1) Using a 3.8% discount rate, compute Net Present Value, Payback, Profitability Index, and IRR for each of investment projects below (note, the inflows are for each year). Based on your computations rank projects and support you answer.

Project 1

Initial Invest= $520,000, Cash inflows of $100,000 for years 1-5 and $50,000 for years 6-10.

Project 2

Initial Invest= $1,050,000, Cash inflows of $400,000 for years 1-3, $0 for years 4-7 and $250,000 for years 8-10.

Project 3

Initial Invest= $820,000, Cash inflows of $300,000 for years 1-5, $0 for years 6-9 and $100,000 for year 10.

Suppose budget of= $1,300,000 what are your suggestions for the 3 projects in the above problem. Describe in detail.

Suppose a budget of= $2,100,000 what are your suggestions for above problem? Describe in detail.