All techniques—Decision among mutually exclusive investments Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and after-tax cash inflows associated with these projects are shown in the following table.
Cash flows
Project A
Project B
Project C
Initial investment (CF0)
$60,000
$100,000
$110,000
Cash inflows (CFt),t = 1 to 5
$20,000
$ 31,500
$ 32,500
a. Calculate the payback period
