12 Consider the following two mutually exclusive projects: ints Cash Flow Year (A) 0 - 430,000 1 78,000 2 98,000 3 73,000 4 448,000 Cash Flow (B) -$ 74,000 40,000 30,000 27,500 22,600 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 3.40 years Project A Project B 2.44 years a-2. If you apply the payback criterion, which investment will you choose? Project A Project B b-1. What is the discounted payback period for each project? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Discounted Payback Period 3.94 years Project A Project B 3.42 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 $ 16,072.31 Project A Project B $ 7,513.72 c-2. If you apply the NPV criterion, which investment will you choose? Project A Project B d-1. What is the IRR for each project? (Round the final answers to 2 decimal places.) IRR 16.37 Project A Project B 20.24 d-2. If you apply the IRR criterion, which investment will you choose? Project A Project B 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 1.037 Project A Project B 1.102 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