Consider the following two mutually exclusive projects:

Year	Cash flow (A) (NKr)	Cash flow (B) (NKr)
0	-300,000	-40,000
1	20,000	19,000
2	50,000	12,000
3	50,000	18,000
4	390,000	10,500

Whichever project you choose, if any, you require a 15 percent return on your investment.

Required:

For each project, calculate and briefly comment on the:

1. Payback period
2. Discounted payback period
3. Net Present Value
4. Profitability index.

Based on your analysis, which of the projects would you choose? Explain why.