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Consider the following mutually exclusive projects with the given cash flows:

Projects	C0C_0C0	C1C_1C1	C2C_2C2	C3C_3C3	C4C_4C4
A	-12,000	4,000	6,000	8,000	10,000
B	-15,000	5,000	7,000	8,000	9,000
C	-9,000	3,000	5,000	7,000	8,000
D	-6,000	2,000	4,000	6,000	7,000

Required:

1. Calculate the payback period for each project.
2. If the standard payback period is 3 years, which project will you select? Will your answer differ if the standard payback period is 4 years?
3. Compute the NPV for each project at a discount rate of 8%. Which project should be selected based on the NPV criterion?
4. Determine the IRR for each project.
5. Rank the projects based on their profitability index.
Consider the following mutually exclusive projects with the given cash flows:

Projects	C0C_0C0	C1C_1C1	C2C_2C2	C3C_3C3	C4C_4C4
A	-12,000	4,000	6,000	8,000	10,000
B	-15,000	5,000	7,000	8,000	9,000
C	-9,000	3,000	5,000	7,000	8,000
D	-6,000	2,000	4,000	6,000	7,000

Required:

1. Calculate the payback period for each project.
2. If the standard payback period is 3 years, which project will you select? Will your answer differ if the standard payback period is 4 years?
3. Compute the NPV for each project at a discount rate of 8%. Which project should be selected based on the NPV criterion?
4. Determine the IRR for each project.
5. Rank the projects based on their profitability index.

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