Consider the following two mutually exclusive projects:

Year Cash Flow

$($A$)$ Cash Flow

$($B$)$

$0$$ $353,000$$ $48,500$

$142,00023,700$

$262,00021,700$

$362,00019,200$

$4437,00014,300$

Whichever project you choose, if any, you require a $16$ 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 $3\mathrm{.}43$ Numeric Response Edit Unavailable. $3\mathrm{.}43$ correct. years

Project B $2\mathrm{.}16$ Numeric Response Edit Unavailable. $2\mathrm{.}16$ correct. years

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

multiple choice $1$

Project A

Project B Correct

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 $3\mathrm{.}97$ Numeric Response Edit Unavailable. $3\mathrm{.}97$ correct. years

Project B $2\mathrm{.}93$ Numeric Response Edit Unavailable. $2\mathrm{.}93$ incorrect. years

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

multiple choice $2$

Project A

Project B Correct

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 $ $7660\mathrm{.}93$ Numeric Response Edit Unavailable. $7660\mathrm{.}93$ incorrect.

Project B $ $8691\mathrm{.}68$ Numeric Response Edit Unavailable. $8691\mathrm{.}68$ incorrect.

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

multiple choice $3$

Project A

Project B Incorrect

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 $17\mathrm{.}18$ Numeric Response Edit Unavailable. $17\mathrm{.}18$ correct. $\%$

Project B $22\mathrm{.}03$ Numeric Response Edit Unavailable. $22\mathrm{.}03$ incorrect. $\%$

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

multiple choice $4$

Project A

Project B Correct

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 $1\mathrm{.}02$ Numeric Response Edit Unavailable. $1\mathrm{.}02$ correct.

Project B $1\mathrm{.}18$ Numeric Response Edit Unavailable. $1\mathrm{.}18$ correct.

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

multiple choice $5$

Project A

Project B Correct

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