You are the project manager for a new project, Project A$.$ You have cost estimates of

$$5,000$ in the first year and no costs in later years. There are no benefits in the first

year. Benefit estimates are for $$1,000,$ $$2,000,$ $$3,000,$ and $$4,000$ in years $2,3,4$ and

$5$ respectively. Your company uses a discount rate of $10\%.$

Given the above data:

a$.$ What is the NPV of Project A$?$

b$.$ What is the ROI of Project A$?$

c$.$ What is the payback period for Project A$?$

Please show your work.

$2.$ Your company has two other projects under consideration, Project B and Project C$.$ It

can only do one of the three projects. Project B has an NPV of $$2,000,$ an ROI of

$50\%$ and a payback period of year $2.$ Project C has an NPV of $$1,000,$ an ROI of $50\%$

and a payback period of year $2.$ Using only these financial criteria to decide, which

project should your company choose and why?