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.