Jones Corporation is attempting to choose the better of 2 mutually exclusive projects for expanding the firm's warehouse capacity. The firm's cost of capital is 15%. Calculate each project's payback period, net present value (NPV), and its internal rate of return (IRR)?
L M
Initial Investment $500,000 $325,000
Year cash inflows
1 $100,000 $140,000
2 $120,000 $120,000
3 $150,000 $95,000
4 $190,000 $70,000
5 $250,000 $50,000