Consider the following two mutually exclusive projects: Year Project A -$54,000 Cash Flows 0 Project B -$23,000 11,600 1 12,700 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% PL 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? A; B; A; A; B A; A; B; B; A A; A; B; B; B B; A; B; B; A B; A; B; A; A