Question: Project A: Initial cost $-3000, returns $1000 per year for 4 years. Project B: Initial cost $-2500, returns $1100 per year for 4 years. Project

Project A: Initial cost $-3000, returns $1000 per year for 4 years. Project B: Initial cost $-2500, returns $1100 per year for 4 years. Project C: Initial cost $-3500, returns $1300 per year for 4 years.

a) Determine the NPV at 8% discount rate.

b) Identify the project(s) with positive NPV.

c) Calculate the payback period for each project.

d) Evaluate the projects if the payback period is limited to 3 years.

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