Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ -$ 0 360,000 45,000 1 35,000 23,000 2 55,000 21,000 3 55,000 18,500 4 430,000 13,600 Whichever project you choose, if any, you require a return of 14 percent 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., 32.16.) Project A Project B Payback period years years 62 2. If you apply the payback criterion, which investment will you choose? O Project A O Project B b- What is the discounted payback period for each project? (Do not round intermediate 1. calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B Discounted payback period years years b- RN 2. If you apply the discounted payback criterion, which investment will you choose? O Project A O 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., 32.16.) NPV Project A Project B 2. If you apply the NPV criterion, which investment will you choose? O Project B O Project A d- What is the IRR for each project? (Do not round intermediate calculations and enter 1. your answers as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Project A Project B d- What is the IRR for each project? (Do not round intermediate calculations and enter 1. your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project A Project B IRR % % d- d2 2. If you apply the IRR criterion, which investment will you choose? O Project A O 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., 32.161.) Project A Project B Profitability index If you apply the profitability index criterion, which investment will you choose? O Project A O Project B f. Based on your answers in (a) through (e), which project will you finally choose? 62