Unit VII AssessmentName:Institution:Date:PART 1Various formal methods are usable in capital budgeting and in ensuring that suitable decisions are made in establishing viable projects to invest. These analysis methods are; Net Present value (NPV), Internal Rate of Return (IRR) and Payback Period (PBP).NPV is usable in estimating the value of potential project through valuation of discounted cash flow. On the other hand, the International rate of return abbreviated is the rate of discount that offers a zero to the net present value. This is regularly fit for measuring the efficiency of investment. Last, the payback period refers to time needed for the return on a certain investment in order to repay the amount of the initial investment. Therefore, in this paper, I will analyze 3 projects and rank them according to viability and later make decisions.PROJECT 1YEAR Cash flow in $  Cumulative cash flow Discount [email protected]% Present Value=Cash flow*Discount rate 1 100,000.00  100,000.00 0.9524 95,240.00 2 100,000.00  200,000.00 0.9070 90,700.00 3 100,000.00  300,000.00 0.8638 86,380.00 4 100,000.00  400,000.00 0.8227 82,270.00 5 100,000.00  500,000.00 0.7835 78,350.00 6 50,000.00  550,000.00 0.7462 37,310.00 7 50,000.00  600,000.00 0.7107 ...