Question: PLEASE ONLY ANSWER E, F, G! THANK YOU! 3. Considering the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow (A)

 PLEASE ONLY ANSWER E, F, G! THANK YOU! 3. Considering the

PLEASE ONLY ANSWER E, F, G! THANK YOU!

3. Considering the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow (A) Cash Flow (B) ($50,000) ($10,000) 10,000 8,000 15,000 3,000 25,000 1,500 30,000 1,000 Whichever project you choose, if any, you require an 8 percent return on your investment. a. Calculate payback period. If you apply the payback criterion, which investment will you choose? Why? b. Calculate discounted payback period. If you apply the discounted payback criterion, which investment will you choose? Why? c. Calculate NPV. If you apply the NPV criterion, which investment will you choose? Why? d. Calculate IRR. If you apply the IRR criterion, which investment will you choose? Why? e. Calculate profitability index. If you apply the profitability index criterion, which investment will you choose? Why? f. Based on your answers in (a) through (e), which project will you finally choose? Why? g. Calculate the crossover rate. Why is there a conflict between project A and project B (explain in terms of crossover rate)

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