Allergia Inc. has the following two mutually exclusive projects: Year 0 1 Cash Flow (A) Cash Flow (B) $300,000 -$35,000 25,000 16,000 60,000 12,000 80,000 15,000 120,000 13,000 2 3 4 Whichever project you choose, if any, you require a 15 percent return on your investment. a) If you apply the payback criterion, which investment will you choose? Why? (5 marks) (CLO3:PLO5:C5) b) If you apply the NPV criterion, which investment will you choose? Why? (5 marks) (CLO3:PLO5:C5) c) If you apply the IRR criterion, which investment will you choose? Why? (5 marks) (CLO3:PLOS:C5) d) If you apply the profitability index criterion, which investment will you choose? Why? (3 marks) (CLO3:PLO5:C5)