A company has to make a choice between two projects namely A & B. The initial capital outlay of two projects are $365,000 and $568,000 respectively for A and B. There will be no scrap value at the end of the life of both the projects. The opportunity cost of capital of the company is 16%. The annual income are as under: Year Project A Project B 15,000 8,500 23,000 11,100 27,500 15,200 19,600 14,700 18,400 22,500 23,400 28,100 35,200 39,200 38,100 50,400 39,000 82,400 45,150 79,200 46,800 98,640 48,630 110,800 52,180 61,400 14 50,280 70,560 15 61,890 52,400 There will be additional cash outflow of $23,000 and $31,000 at the end of 8 year for project A and B respectively Analyze which project is better for the company using following approaches: 1. Net present value 2. Payback period 3. Discounted payback period 4. Profitability index