Posting this for the second time, hope someone can really answer this time. Average return : 8.39%

Do it on words, not excel. Thank you so much

Assume that the company that you choose for Stock C, is planning to invest in four mutually exclusive investment projects, W, X, Y and Z, which have the following after-tax cash flows:

	Cash Flow, per year ($)
Investment Project	0	1	2	3	4	Thereafter
W	(165,000)	58,000	48,000	38,000	28,000	900
X	(165,000)	0	0	0	172,000	900
Y	(165,000)	53,000	53,000	33,000	33,000	900
Z	(165,000)	43,000	43,000	43,000	43,000	900

Assume that the average return calculated in Question (1), is the expected return for the company; use it to answer the following questions. Ignore the negative sign if the answer that you calculated in Question (1) showed a negative figure:

1. Apply the present-value technique to assess the acceptability of each investment.

(12 marks)

2. From the information given, which, if either, of the four investments would you recommend to the firm to choose? Explain your answer.

(1 mark)