. Given the following cash flows for four projects, calculate the net present value using a discount rate of 12% a year. What are the internal rates of return for the projects? Which project is the best?

Project A Project B Project C Project D

Year Income Expenditure Income Expenditure Income Expenditure Income Expenditure

0 0 18,000 0 5,000 0 24,000 0 21,000

1 2,500 0 0 10,000 2,000 10,000 0 12,000

2 13,500 6,000 0 20,000 10,000 6,000 20,000 5,000

3 18,000 0 10,000 20,000 20,000 2,000 20,000 1,000

4 9,000 2,000 30,000 10,000 30,000 2,000 30,000 0

5 5,000 0 50,000 5,000 25,000 2,000 25,000 0