This question has five sub-questions: (a) to (e)

Hi-Tech is evaluating four capital investment projects A, B, C, and D, which have cash flows as shown below:

	Cashflows
Projects	Year 0	Year 1	Year 2	Year 3
A	-10000	10000
B	-10000	9100	9100
C	-10000	4400	6100	14400
D	-10000	14400	4400	2700

(a) Rank these four projects according to the payback period. (3 marks)

(b) What is the internal rate of return (IRR) for Project A? (1 mark)

(c) Rank these four projects according to the net present value with a 10% discount rate. (3 marks)

(d) Rank these four projects according to the net present value with a 30% discount rate. (3 marks)

(e) Explain why your rankings in (c) and (d) are different from (or the same as) each other.