All techniques—Decision among mutually exclusive investments Pound Industries is attempting to…

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