Question: Consider the following two mutually exclusive projects, A and B. When deciding which project to undertake, you require a 14 percent return on your investment

Consider the following two mutually exclusive projects, A and B. When deciding which project to undertake, you require a 14 percent return on your investment a) Apply the payback criterion for investments A and B, and determine which investment you will choose based on this criterion. Payback for A = years Payback for B = years Which will you choose? (choose one) b) Apply the discounted payback criterion for investments A and B, and determine which investment you will choose based on this criterion. Discounted payback for A = years Discounted payback for B = years Which will you choose? (choose one) c) Apply the NPV criterion for investments A and B, and determine which investment you will choose based on this criterion. NPV for A = $ NPV for B = $ Which will you choose? (choose one) d) Apply the IRR criterion for investments A and B, and determine which investment you will choose based on the criterion. Approximate the IRR to within two percentage points. IRR for A = % IRR for B = % Which writ you choose? (choose one) e) Apply the profitability index criterion for investments A and B, and determine which investment you will choose based on this criterion. PI for A = PI for B = which will you choose? (choose one)

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