Consider the following two mutually exclusive projects:

YearCash Flow $($A$)$Cash Flow $($B$)0$$ $54,000$$ $23,000112,70011,600223,20011,200327,60012,500446,5006,000$

Whichever project you choose, if any, you require a rate of return of $14$ percent on your investment. If you apply the payback criterion, you will choose Project $\_\_\_\_\_\_\_\_\_$blank; if you apply the NPV criterion, you will choose Project $\_\_\_\_\_\_\_\_\_$blank; if you apply the IRR criterion, you will choose Project $\_\_\_\_\_\_\_\_\_$blank; if you choose the profitability index criterion, you will choose Project $\_\_\_\_\_\_\_\_\_$blank. Based on your first four answers, which project will you finally choose?

Multiple Choice

A; B; A; A; B

A; A; B; B; A

A; A; B; B; B

B; A; B; A; A

B; A; B; B; A