Thread: probability

MTP limited is considering three projects 3 projects D,E, and F each requiring an initial investment of 100000. the expected annual cash inflow is as follows

yr prjct D prjct E prjct F

1 50000 10000 10000

2 50000 10000 50000

3 10000 50000 40000

4 10000 30000 70000

5 10000 100000 10000

determine for each project ?

1. payback period

2. NPV assuming the company's cost of capital is 10%

3 IRR

4 Rank the projects by the three methods.