Charles-Baker, International, Inc is investing in two projects, You must assist them in choosing the "correct alternative" for each scenario. They have two projects. A andB. Project A has an initial cost (now) -$16,000 and yearend returns of $10,500, $9,100 and $3,000 respectively for years 1, 2, and 3.Project B has an initial cost of -$3,200 and yearend returns of $3,300, $1,260 and $600 respectively for years 1, 2, and 3.

Considering the calculations of net present value (NPV) and profitability index (PI), which method is correct? Why?