*****Please do not copy paste answers from web as this is my school assignment that treat plagiarism very seriously****** *****Please write as much words as possible and provide example******

ABC Company is considering a number of projects which are mutually exclusive. It has $500,000 available for investment. The details of these projects are shown below Project Life Payback Period NPV IRR PI Cost of capital Investment 3 years 2.5 vears 3.2 years 3.6 years 36,256 18.91% 1.12 12% 300,000 3 years 2.2 years 48,265 21 .26% 1.16 12% 300,000 4 years 4 years 66,194 21 .86% 1.165 14% 400,000 29,220 16.37% 11% 250,000 Your colleague suggest that Project D should be taken up if the company uses payback period method while it should take up Project B if NPV or IRR are used. Appraise (a) Why IRR is not appropriate decision criteria in this case