12 Consider the following two mutually exclusive projects: 10 points Year 0 1 2 3 4 Cash Flow (A) -$ 470,000 102,000 122,000 77,000 462,000 Cash Flow (B) -$ 86,000 48,000 34,000 31,500 26,600 Whichever project you choose, if any, you require a 15% return on your investment. a-1. What is the payback period for each project? (Round the final answers to 2 decimal places.) Payback Period 3.37 years Project A Project B 2.51 x years a-2. If you apply the payback criterion, which investment will you choose? Project A Project B 12 b-1. What is the discounted payback period for each project? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) 10 Discounted Payback Period 3.90 years points Project A Project B 3.54 x years b-2. If you apply the discounted payback criterion, which investment will you choose? Project A Project B c-1. What is the NPV for each project? (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) NPV 25723.93 Project A $ Project B $ 6933.63 12 c-2. If you apply the NPV criterion, which investment will you choose? Project A Project B 10 points d-1. What is the IRR for each project? (Round the final answers to 2 decimal places.) IRR 17.08 Project A Project B 19.14 X % d-2. If you apply the IRR criterion, which investment will you choose? Project A Project B 10 points e-1. What is the profitability index for each project? (Do not round intermediate calculation. Round the final answers to 3 decimal places.) Profitability Index 1.05 Project A Project B 1.08 x e-2. If you apply the profitability index criterion, which investment will you choose? Project A Project B f. Based on your answers in (a) through (e), which project will you finally choose? Project A Project B