i just need help with (A). (B). and (C).

3. Project Selection (Financial models) (3 pts.) O Even Cash Flows (1 pt.) A company plans invest $10 million in a project. The project leader expects $2.5 million per year for 8 years. Calculate payback period of the project. 1 Initial Investment Payback Period (even cash flow) 10/2.5 = 4 years Cast inflow per Period (ii) Uneven Cash Flows (2 pts.) A company has an option to pick a project between two projects. The estimated initial investment for Project Delta (out flow) is $600,000 in the first year. The estimated initial investment for Project Gamma (out flow) is $500,000 in the first year. The yearly revenue (in flow) for both projects is shown in the table below. Which project to pick based on the payback period? Project Delta: Cumulative Year Out flow In flow Net flow Net flow 0 600K -600 -600 -500 100 100 = (-600+100) 2 135 135 -365 3 4 5 140 160 175 200 140 160 125 200 -225 -65 60 260 SOK 6 Project Gamma: Year Out flow In flow Net flow SOOK 0 1 2 3 4 5 6 80 100 120 130 150 180 -500 80 100 120 130 150 180 Cumulative Net flow -500 420 -320 200 -70 80 260 Payback Period (Uneven Cash Flow) = A + Project Delta = 4+ A: Last period with negative cumulative cash flow? 65 128 = 4.52 years. Project Gamma = 4 + 70 150 4.47 years. B: Absolute value of cumulative cash flow at the end of Period A? (or cash remaining at the end of Period A) I C: Net flow cash generated in the period immediately after A