Consider the following two mutually exclusive projects:

	Year	Project A	Project B
Cash Flows	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
Payback		2.66 years	?
NPV		$21,152.94	?
IRR		28.50%	30.94%
PI		1.39	?

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

If you apply the payback criterion, you will choose investment _____.

If you apply the NPV criterion, you will choose investment _____.

If you apply the IRR criterion, you will choose investment ____.

If you choose the profitability index criterion, you will choose investment ____.

Based on your first four answers, which project will you finally choose?