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Descriptive format:You have the following cash flows for four projects. Project A requires ?20,000 initially...

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Accounting

Descriptive format:

You have the following cash flows for four projects. Project A requires ?20,000 initially and yields ?5,000 each year for 4 years. Project B needs ?18,000 and returns ?4,000, ?5,000, ?6,000, and ?7,000. Project C demands ?15,000 and generates ?3,000, ?4,000, ?5,000, and ?6,000. Project D requires ?12,000 and produces ?2,000, ?3,000, ?4,000, and ?5,000.

Required:

  1. Calculate the payback period for each project.
  2. Evaluate which project meets a 3-year payback period standard.
  3. Compute the NPV at a discount rate of 7%.
  4. Determine the IRR for each project.
Provide a recommendation based on NPV and IRR analysis

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