consider the following two mutually exclusive projects:

year cash flow (A) cash flow (B)

0 -54000 -23000

1 12700 11600

2 23200 11200

3 27600 12500

4 46500 6000

Whichever project you choose, if any, you require a 14% return on your investment

.

1)

If you apply the payback criterion, you will choose Project ______ if the company has cutoff

period, 3 years;

2)

If you apply the NPV criterion, you will choose Project ______;

3)

If you apply the IRR criterion, you will choose Project _____;

4)

If you choose the profitability index criterion, you will choose Project ___