A&B Enterprises is trying to select the best investment from among four alternatives. Each alternative involves an initi

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A&B Enterprises is trying to select the best investment from
among four alternatives. Each alternative involves an initial
outlay of $100,000. Their cash flows follow:
Year
A
B
C
D
1
$10,000
$50,000
$25,000
$0
2
20,000
40,000
25,000
0
3
30,000
30,000
25,000
45,000
4
40,000
0
25,000
55,000
5
50,000
0
25,000
60,000
Evaluate each alternative based on
a) Payback period,
b) Net present value (use a 10% discount rate),
c) Internal rate of return.
d) Use the evaluation above and generate a ranking of the
projects based on each method.