Project	Co	C1	C2	C3	C4
A	-1000	+600	+200	+200	+1000
B	-1000	+200	+200	+600	+1000
C	-1300	+100	+100	+100	+1600
D	-1300	0	+300	+300	+1600

a) Calculate the payback period for each project. Explain the pitfalls of this method.(5)

b) If the standard payback period is 2 years, which project will you select? Will our answer be different if the standard payback period is 3 years. (5)

c) If the cost of capital is 10%, compute the discounted payback for each project?Which projects will you recommend if the standard payback period is 2 years, 3 years (5)

d) Compute the NPV of each project? Which projects will you recommend?(5)