Consider the following two mutually exclusive projects:

Year

$1$

$2$

$3$

$4$

Cash Flow

$($A$)$

$-$$$350,000$

$45,000$

$65,000$

$65,000$

$440,000$

Cash Flow

$($B$)$

$-$$ $50,000$

$24,000$

$22,000$

$19,500$

$14,600$

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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.$)$

Project A

Project B

Payback Period

a$-2.$ If you apply the payback criterion, which investment will you choose?

Project A

Project B

b$-1.$ What is the discounted payback period for each project? $($Do not round intermediate calculations. Round the final answers to $2$ decimal places.$)$

Project A

Protect R

Discounted Payback

Period

b$-2.$ If you apply the discounted payback criterion, which investment will you choose?

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$*$Project A

$*$Project B

c$-1.$ What is the NPV for each project? $($Do not round intermediate calculations. Round the final answers to $2$ decimal places. Omit $ sign in your response.$)$

Project A

Project B

NPV

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?

Project A Project B

$5$

points

d$-2.$ If you apply the IRR criterion, which investment will you choose?

O Project A

$$ Project B

e$-1.$ What is the profitability index for each project? $($Do not round intermediate calculation. Round the final answers to $3$ decimal places.$)$

Project A Project B

Profitability Index

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 B