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
INITIAL INVESTMENT (CF)	$90,000	$130,000	$120,000
CASH INFLOWS (CF), t=1 to 5	$30,000	$41,000	$41,500

Calculate the payback period for each project.

payback period = initial investment / after-tax cash flow

initial investment of project A is:

round to the nearest dollar

after-tax cash flow of project A is:

round to the nearest dollar

payback period of project A is:

round to two decimal places

initial investment of project B is:

round to the nearest dollar

after-tax cash flow of project B is:

round to the nearest dollar

payback period of project B is:

round to two decimal places

initial investment of project C is:

round to the nearest dollar

after-tax cash flow of project C is:

round to the nearest dollar

payback period of project C is:

round to two decimal places

Calculate the net present value? (NPV) of each? project, assuming that the firm has a cost of capital equal to 15%.

NPV of project A: $

round to the nearest cent

NPV of project B: $

round to the nearest cent

NPV of project C: $

round to the nearest cent

Calculate the internal rate of return? (IRR) for each project.

IRR of project A: %

round to two decimals

IRR of project B: %

round to two decimals

IRR of project C: %

round to two decimals

Indicate which project you would recommend.

Answer rating: 100% (QA)

To calculate the payback period net present value NPV and internal rate of return IRR for each project we will use the provided data and formulas Lets ... View the full answer