The following business concepts have been developed by your colleagues, and they have asked you to provide feedback on each as a potential investment. Using the data provided, calculate the payback period and NPV of each.

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Seed Capital Payback Period Project Net Cash Flow Year 2 Other Net Cash Rate of Return (%) Flow Year Net Cash Net Cash Net Cash Flow Year Net Cash Flow Year 5 NPV Flow Year 3 Flow $0 3.2 years 3.2 years A $200 $300 $0 $1000 $400 $500 5% $1 million $200,000/year for 5 years $6 million for 3 years B $25,000 $25,000 $250,000 $2000 $148.000 8% $8 million $1 million $5 million 6.3 years 17% $0 $0 $0 3.6 years 4.5 years $0 $50,000 $1000 $29,000 $35,000 $70,000 $0 25% $20 million $40 million $120 million $80 million $20 million in Year 6, $5 million in Year 7 6% $0 $0