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 $96,000 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

Attempt 1/5 for 10 pts.

Part 1

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

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Attempt 1/5 for 10 pts.

Part 2

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

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Attempt 1/5 for 10 pts.

Part 3

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

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Attempt 2/5 for 8 pts.

Part 4

Which project is best based on the payback rule?

Project B

Project C

Project A

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Attempt 1/5 for 10 pts.

Part 5

What is the NPV of project A?

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Attempt 1/5 for 10 pts.

Part 6

What is the NPV of project B?

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Attempt 1/5 for 10 pts.

Part 7

What is the NPV of project C?

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Attempt 1/5 for 10 pts.

Part 8

Which project is best based on the NPV rule?

Project B

Project C

Project A