9.17 (20 marks) Consider the following two mutually exclusive projects Whichever project you choose, if any, you require a 15% return on investment (A) -$ 350,000-$ 50,000 $ 45,000 $ 24,000 $ 65,000 $ 22,000 $ 65,000 $ 19,500 $ 440,000 $ 14,600 What is the payback period for each project? b) If you apply the payback criterion, which investment will you choose? What is the discounted payback period for each project? d) If you apply the discounted payback criterion, which investment will you choose? What is the NPV for each project? If you apply the NPV criterion, which investment will you choose? g) What is the IRR for each project? h) If you apply the IRR criterion, which investment will you choose? What is the profitability index for each project? If you apply the profitability index criterion, which investment will you choose? Based on your answers above, which project will you finally choose? Year 2 3 4 f) D) J) c) e) k) a) Cash Flow Cash Flow (B)

p.17 (20 marks) Consider the following two mutually exclusive projects: Whichever project you choose, if any, you require a 15% return on investment a) What is the payback period for each project? b) If you apply the payback criterion, which investment will you choose? c) What is the discounted payback period for each project? d) If you apply the discounted payback criterion, which investment will you choose? e) What is the NPV for each project? f) If you apply the NPV criterion, which investment will you choose? g) What is the IRR for each project? h) If you apply the IRR criterion, which investment will you choose? 1) What is the profitability index for each project? j) If you apply the profitability index criterion, which investment will you choose? k) Based on your answers above, which project will you finally choose