Question: HELP SOLVE THIS PROBLEM AND PLEASE DOUBLE-CHECK THE ANSWERS BEFORE SENDING THEM Consider the following projects: Cash Flow (E) Project CO C1 C2 C3 C4

HELP SOLVE THIS PROBLEM AND PLEASE DOUBLE-CHECK THE ANSWERS BEFORE SENDING THEM

HELP SOLVE THIS PROBLEM AND PLEASE DOUBLE-CHECK THE ANSWERS BEFORE SENDING THEM

Consider the following projects: Cash Flow (E) Project CO C1 C2 C3 C4 C5 A -5,000 +5,000 0 0 0 0 B -3,000 +1,000 +1,000 +3,000 +1,500 +1,500 C -2,000 +1,000 +500 0 +1,200 +1,200 Required i. If the opportunity cost of capital is 10%, compute the projects' NPV. Which project(s) should the firm accept? (5 marks) ii. Calculate the payback period for each project. Which project(s) would a firm using the payback rule accept, if the cut-off period were three years? (5 marks) iii. Calculate the internal rate of return (IRR) of project A. (5 marks) iv . If we only have $5,000 to invest, which project(s) should we select and why

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