Question: Three projects have the cash flows given here. The cost of capital is 10%. a. Calculate the paybacks for all three projects. Rank the projects

Three projects have the cash flows given here. The cost of capital is 10%.

a. Calculate the paybacks for all three projects. Rank the projects from best to worst based on their paybacks.

b. Calculate the NPVs for all three projects. Rank the projects from best to worst based on their NPVs.

c. Why are these two sets of rankingsdifferent?

Three projects have the cash flows given here. The cost

YEAR Project 1- Project 2- Project 3- 10 4 321 5 10 1 23 4 5 10 4 32 10

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