Projects and Cash Flows (in ?):ProjectsC?C?C?C?C?E-15,0005,0003,0002,00010,000F-20,0006,0004,0005,0008,000G-10,0002,5003,5001,5004,500H-5,0001,5001,0002,0003,000Required:Calculate the payback period for each project.If the standard payback...

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Accounting

Projects and Cash Flows (in ?):

Projects

C?

C?

C?

C?

C?

E

-15,000

5,000

3,000

2,000

10,000

F

-20,000

6,000

4,000

5,000

8,000

G

-10,000

2,500

3,500

1,500

4,500

H

-5,000

1,500

1,000

2,000

3,000

Required:

  1. Calculate the payback period for each project.
  2. If the standard payback period is 3 years, which project will you select?
  3. If the cost of capital is 12%, compute the discounted payback period for each project.
  4. Compute the NPV of each project and determine which project to recommend based on the NPV criterion.
  5. Calculate the profitability index (PI) for each project.

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