Try evaluating the following projects with all of the basic capital budgeting tools, in other words, which project would you pick as the best:******** Projected Cash Flow Years 0 1 2 3 4 5 Project A (500) 45 55 65 175 185 Project B (250) 85 65 55 45 100 Project C (400) 175 75 75 175 25 Use 10% as your discount rate! Remember, NPV is always in dollars, IRR is a percentage, PI is an index number, and PB is in years. I have done PI and PB for you with project A. *Year 0 is your initial cost outlay -- the cost of the project. **Double check this answer - -how many think that this is right or wrong!! Calculate the following for each project: NPV IRR PI PB Project A 1.26** 4.86 yrs Project B - Project C Hint: there are many ways to solve this problem, some are shorter than others. For the shortest way, look in your calculator guide on calculating NPV and IRR. It involves using the blue g key and the Cfo and Cfj keys (using the HP-12C). Also, all of these tools can be calculated via Excel - -see the Excel capital budgeting file in this weeks items.