# 11. A&B Enterprises is trying to select the best investment from among four alte

11. A&B Enterprises is trying to select the best investment from among four alternatives. Each alternative requires an initial outlay of \$100,000. Their cash flows are as follows:Project AYear 1: \$10,000Year 2: \$20,000Year 3: \$30,000Year 4: \$40,000Year 5: \$50,000Project BYear 1: \$50,000Year 2: \$40,000Year 3: \$30,000Year 4: \$0Year 5: \$0Project CYear 1: \$25,000Year 2: \$25,000Year 3: \$25,000Year 4: \$25,000Year 5: \$25,000Project DYear 1: \$0Year 2: \$0Year 3: \$45,000Year 4: \$55,000Year 5: \$60,000Evaluate and rank each of the four projects based on (a) payback period, (b) net present value (use a 10% discount rate), and (c) internal rate of return. You will have to use Excel or a financial calculator to determine the IRR. You are welcome to use Excel or a financial calculator to determine the NPV.11. A&B Enterprises is trying to select the best investment from amongfour alternatives. Each alternative requires an initial outlay of\$100,000. Their cash flows are as follows:Project AYear 1: \$10,000Year 2: \$20,000Year 3: \$30,000Year 4: \$40,000Year 5: \$50,000Project BYear 1: \$50,000Year 2: \$40,000Year 3: \$30,000Year 4: \$0Year 5: \$0Project CYear 1: \$25,000Year 2: \$25,000Year 3: \$25,000Year 4: \$25,000Year 5: \$25,000Project DYear 1: \$0Year 2: \$0Year 3: \$45,000Year 4: \$55,000Year 5: \$60,000Evaluate and rank each of the four projects based on (a) payback period,(b) net present value (use a 10% discount rate), and (c) internal rateof return. You will have to use Excel or a financial calculator todetermine the IRR. You are welcome to use Excel or a financialcalculator to determine the NPV.