Consider the following two mutually exclusive projects:

Year	Cash Flow (A)	Cash Flow (B)
0	$425,000	$40,000
1	44,000	20,400
2	62,000	13,300
3	79,000	18,600
4	540,000	15,400

The required return on these investments is 10 percent.

Required:
(a)	What is the payback period for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

	Payback period
Project A:	years
Project B:	years

(b)	What is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

	Net present value
Project A:	$
Project B:	$

(c)	What is the IRR for each project? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)

	Internal rate of return
Project A:	%
Project B:	%

(d)	What is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 3 decimal places (e.g., 32.161).)

	Profitability index
Project A:
Project B:

(e)

Based on your answers in (a) through (d), which project will you finally choose?

Project A or Project B