Lobers, Inc., has two investment proposals, which have the following characteristics:

PROJECT A PROJECT B

PROFIT NET CASH PROFIT NET CASH

PERIOD COST AFTER TAXES FLOW COST AFTER TAXES FLOW

0 $9,000 - - $12,000 - -

1 $1,000 $5,000 $1,000 $5,000

2 1,000 4,000 1,000 5,000

3 1,000 3,000 4,000 8,000

For each project, compute its payback period, its net present value, and its profitability

index using a discount rate of 15 percent.