Question: please help with calculation A&B Enterprises is trying to select the best investment from among four alternatives. Each alternative involves an initial outlay of $100,000.
please help with calculation
A&B Enterprises is trying to select the best investment from among four alternatives. Each alternative involves an initial outlay of $100,000. Their cash flows follow:
| Year | A | B | C | D |
| 1 | $20,000 | $60,000 | $35,000 | $0 |
| 2 | 30,000 | 50,000 | 35,000 | 65,000 |
| 3 | 40,000 | 40,000 | 35,000 | 55,000 |
| 4 | 50,000 | 0 | 35,000 | 25,000 |
| 5 | 60,000 | 0 | 35,000 | 0 |
Evaluate and rank each alternative based on a) payback period, b) net present value (use a 10% discount rate), and c) internal rate of return.
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