Question: Please show work step by step, no excel. Thank you! The three alternative projects shown below have the expected cash flows that are given, and

Please show work step by step, no excel. Thank you!

The three alternative projects shown below have the expected cash flows that are given, and the cost of capital is 10%.

  1. Calculate the paybacks for all three projects. Rank the projects from best to worst based on their paybacks.
  2. Calculate the NPVs for all three projects. Rank the projects from best to worst based on their NPVs.
  3. Why are these two sets of rankings different?
year 0 1 2 3 4 5
Project A -10 4 3 2 1 5
Project B -10 1 2 3 4 5
Project C -10 4 3 2 1 10

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