Case Study

The expected cash flows of three projects are given below. The cost of capital is 10 percent.
Period	Project A (INR.)	Project B (INR.)	Project C (INR.)
0	(5,000)	(5,000)	(5,000)
1	900	700	2000
2	900	800	2000
3	900	900	2000
4	900	1000	1000
5	900	1100
6	900	1200
7	900	1300
8	900	1400
9	900	1500
10	900	1600

What is the answer of the following questions?

1. Payback Period for Project A, B & C

2. Net Present Value (NPV) for Project A, B & C

3. Internal Rate of Return (IRR) for Project A, B & C

4.Accounting Rate of Return for Project A, B & C

5. Ranking of all the project based on NPV