Consider the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow Cash Flow (B) (A) -$395,000 -$ 77,000 84,000 74,000 74,000 449,000 42,000 31,000 28,500 23,600 Whichever project you choose, if any, you require a 15% return on your investment. a-1. What is the payback period for each project? (Round the final answers to 2 decimal places.) A Project A Project B Payback Period 4 3 years years a-2. If you apply the payback criterion, which investment will you choose?

Consider the following two mutually exclusive projects: Whichever project you choose, if any. you require a 15% return on your investment. a-1. What is the payback period for each project? (Round the final answers to 2 decimal places.) 0-2. If you apply the payback criterion, which investment will you choose? c-2. If you apply the NPV criterion, which investment will you choose? Project A Project B d-1. What is the IRR for each project? (Round the final answers to 2 decimal places.) d.2. If you apply the IRR criterion, which investment will you choose? Project A Project 8 e-1. What is the profitability index for each project? (Do not round intermediate colculation. Round the final answers to 3 dec places.) b-1. What is the discounted payback period for each project? (Do not round intermediote calculations. Round the final onswers to 2 decimal ploces.) b-2 If you apply the discounted payback critenon which investment will you choose? Project A Project 8 6-1. Whar is the NPV for each project? (Do not round intermediate calculotions. Round the final antwers to 2 decimal places. Omit 5 sign in your response.) c-2. if you apply the NPy criterion which investment will you choose? Project A Project B e-1. What is the profitability index for each project? (Do not round intermediate colculation. Round the final answers to 3 decimal ploces) ploces.) e-2. If you apply the profitability index criterion, which investment will you choose? Project A Project B f. Based on your answers in (a) through (e). which project will you finally choose? Project A Project 8