Consider the following two mutually exclusive projects: Year Cash Flow A 0 -$390,000 1 54,000 2 74,000 3 69,000 4 444,000 Cash Flow B - $62,000 32,000 26,000 23,500 18,600 Whichever project you choose, if any, you require a 15% return on your investment. For each question, please present your answers with steps of calculation either by using formulas or a calculator. 1. a. What is the payback period for each project? b. If you apply the payback criterion, which investment will you choose? 2. a. What is the discounted payback period for each project? b. If you apply the discounted payback criterion, which investment will you choose? 3. a. What is the NPV for each project? b. If you apply the NPV criterion, which investment will you choose? 4. a. What is the IRR for each project? b. If you apply the IRR criterion, which investment will you choose? 5. a. What is the profitability index for each project? b. If you apply the profitability index criterion, which investment will you choose? 6. Based on your answers in 1 through 5, which project will you finally choose? Why? Project A