Question: a. Year 0 1 2 5. Consider the following two mutually exclusive projects (the required return on both projects is 1296) (21+3+6-30 Points) 3

a. Year 0 1 2 5. Consider the following two mutually exclusive

a. Year 0 1 2 5. Consider the following two mutually exclusive projects (the required return on both projects is 1296) (21+3+6-30 Points) 3 CFS S (256,000) $ 68,000 $ 45,000 $ 56,000 $ 252,000 EDCFS Payback Period NPV Project A r-12% (0.12) CFs S (59,000) $ 32,000 $ 19,000 $ 22,500 $ 24,000 Project B -12% (0.12) EDCFS Payback Period NPV PI PI Show each step of your work; you can use the table above for simplicity. Calculate Payback period, NPV and Profitability index and show which project would you choose based each of the methods? b. What would be your final decision and why? Mention three advantages of NPV compared to the other investment decision criteria?

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