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 $91,000 and has a required return of 5%.

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

Part 1

What is the payback period for project A (in years)? (2+ decimals)

Part 2

What is the payback period for project B (in years)? (2+ decimals)

Part 3

What is the payback period for project C (in years)? (2+ decimals)

Part 4

Which project is best based on the payback rule?

Project A

Project C

Project B

Part 5

What is the NPV of project A?

Part 6

What is the NPV of project B?

Part 7

What is the NPV of project C?

Part 8

Which project is best based on the NPV rule?

Project B

Project C

Project A