Which project(s) to accept based on the cash flow forecasts
Task:Senior management asks you to recommend a decision on which project(s) to accept based on the cash flow forecasts provided.Relevant information:1. The firm uses a 3-year cutoff when using the payback method.2. The hurdle rate used to evaluate capital budgeting projects is 15%.The cash flows for projects A, B and C are provided in attachment below.1. Assume the projects are independent and answer the following:–Calculate the payback period for each project.–Which project(s) would you accept based on the payback criterion?–Calculate the internal rate of return (IRR) for each project.–Which projects would you accept based on the IRR criterion?–Calculate the net present value (NPV) for each project.–Which projects would you accept based on the NPV criterion?2. Assume the projects are mutually exclusive and answer the following:–Which project(s) would you accept based on the payback criterion?–Which projects would you accept based on the IRR criterion?–Which projects would you accept based on the NPV criterion?