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All techniques Decision among mutually exclusive investments Pound Industries is attempting to select the best...

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Accounting

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All techniques Decision among mutually exclusive investments Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and after-tax cash inflows associated with these projects are shown in the following table Cash flows Project A Project B Project C $90,000 $130,000 Initial investment (CF) $140,000 Cash inflows (CF), t 1 to 5 $30,000 $41,500 $42,000 a. Calculate the payback period for each project. b. Calculate the net present value (NPV of each project, assuming that the firm has a cost of capital equal to 14%. c. Calculate the internal rate of return (IRR) for each project. d. Indicate which project you would recommend a. The payback period of project A is years. (Round to two decimal places.) The payback period of project Bis years. (Round to two decimal places.) The payback period of project C is years. (Round to two decimal places. b. The NPV of project A is (Round to the nearest cent.) The NPV of project B is Round to the nearest cent. The NPV of project C is Round to the nearest cent. c. The IRR of project Ais Round to two decimal places

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