Consider the following two mutually exclusive projects:

Year Cash Flow

$($A$)$ Cash Flow

$($B$)$

$0$$ $344,000$$ $49,000$

$151,00024,600$

$271,00022,600$

$371,00020,100$

$4446,00015,200$

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

a$-1$

What is the payback period for each project? $($Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Payback period

Project A

years

Project B

years

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

multiple choice $1$

Project A

Project B

b$-1$

What is the discounted payback period for each project? $($Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Discounted payback period

Project A

years

Project B

years

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

multiple choice $2$

Project A

Project B

c$-1$

What is the NPV for each project? $($Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

NPV

Project A $

Project B $

c$-2$ If you apply the NPV criterion, which investment will you choose?

multiple choice $3$

Project A

Project B

d$-1$

What is the IRR for each project? $($Do not round intermediate calculations. Enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

IRR

Project A

$\%$

Project B

$\%$

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

multiple choice $4$

Project A

Project B

e$-1$

What is the profitability index for each project? $($Do not round intermediate calculations and round your answers to $3$ decimal places, e$.$g$.,32\mathrm{.}161.)$

Profitability index

Project A

Project B

e$-2$ If you apply the profitability index criterion, which investment will you choose?

multiple choice $5$

Project A

Project B

f$.$ Based on your answers in $($a$)$ through $($e$),$ which project will you finally choose?

$($Click to select$)$