WH Smith Company is evaluating three projects: A, B, C, with cash flows as given in the table. Each project requires an initial investment of $99,000 and has a required return of 9%.

Year	A	B	C
1	50,000	0	20,000
2	40,000	50,000	40,000
3	20,000	50,000	40,000
4	10,000	40,000	40,000

What is the payback period for project A (in years)?

What is the payback period for project B (in years)?

What is the payback period for project C (in years)?

Which project is best based on the payback rule?

Project C

Project A

Project B

What is the NPV of project A?

What is the NPV of project B?

What is the NPV of project C?

Which project is best based on the NPV rule?

Project C

Project A

Project B