Consider the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B) 0 $ 54,000 $ 23,000 1 12,700 11,600 2 23,200 11,200 3 27,600 12,500 4 46,500 6,000

Whichever project you choose, if any, you require a rate of return of 14 percent on your investment. If you apply the NPV criterion, you will choose Project ________; if you apply the IRR criterion, you will choose Project ________; if you choose the profitability index criterion, you will choose Project ________. Based on these three answers, the project will you finally choose is _______.

A. B; A; A; B

B. A; B; B; B

C. A; B; A; A

D. A; B; B; A

E. B; B; B; A