Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ -$ O 1 234 2 357,000 38,000 58,000 58,000 433,000 Whichever project you choose, if any, you require a return of 14 percent on your investment. 46,500 23,300 21,300 18,800 13,900 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., 32.16.) Project A Project B Payback period O Project A O Project B years years a- 2. If you apply the payback criterion, which investment will you choose? b- What is the discounted payback period for each project? (Do not round intermediate 1. calculations and round your answers to 2 decimal places, e.g., 32.16.)

b. What is the discounted payback period for each project? (Do not round intermediate 1. calculations and round your answers to 2 decimal places, e.g., 32.16.) b- If you apply the discounted payback criterion, which investment will you choose? 2. Project A Project B c-1. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.4.32.16.) 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., 32.161.) 2. If you apply the profitability index criterion, which investment will you choose? Project A Project B f. Based on your answers in (a) through (e), which project will you finally choose? Consider the following two mutually exclusive projects: Whichever project you choose, if any, you require a return of 14 percent 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., 32.16.) a- If you apply the payback criterion, which investment will you choose? Project A Project B b. What is the discounted payback period for each project? (Do not round intermediate 1. calculations and round your answers to 2 decimal places, e.g., 32.16.) c. If you apply the NPV criterion, which investment will you choose? Project A Project B d- What is the IRR for each project? (Do not round intermediate calculations and enter 1. your answers as a percent rounded to 2 decimal places, e.g., 32.16.) d. If you apply the IRR criterion, which investment will you choose? 2. Project A Project B 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., 32.161.)