Mixed table and bullet points format:ProjectsInitial Cost (?)Year 1 (?)Year 2 (?)Year 3 (?)Year 4...

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Accounting

Mixed table and bullet points format:

Projects

Initial Cost (?)

Year 1 (?)

Year 2 (?)

Year 3 (?)

Year 4 (?)

Year 5 (?)

U

30,000

6,000

6,000

6,000

6,000

10,000

V

25,000

5,000

5,000

5,000

5,000

8,000

W

20,000

4,000

4,500

5,000

5,500

6,000

X

15,000

3,000

3,500

4,000

4,500

5,000

Required:

  • Calculate the payback period for each project.
  • Identify which project meets a standard payback period of 3.5 years.
  • Compute the NPV for each project using a discount rate of 9%.
  • Determine the IRR for each project.
  • Provide a recommendation based on both NPV and IRR.

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