Capital Budgeting Problem

ICAPITAL BU DGETING PROBLEM Given below are four projects {Projects A, B, C, and D) along with the initial investment and the three 1[rears future cash inflows. The require rate of return is 15%. NET PRESENT VALUE AND INTERNAL RATE OF RETURN Project A Project E Project C Project D Initial ($5 coo) ($i,t'}] ($3,t}) ($13t},0) Investment Cash Flow Year 1 zoom sspoo moon memo Year 2 20,000 some depot] some Year 3 zoom some some some Required 15% 15% 15% 15% return = Compute for the following: 1. Simple Payback Period 2. Net Present Value 3. Profitability index 4. IRR 5. Ranking using NPV, IRR, P1 {in the order of acceptability)