Problem, $8$pts

Project A Project B

Payback period $($not$-$discounted$)4$ years $5$ years

Discounted Profitability index $($at completion$)1\mathrm{.}051\mathrm{.}10$

NPV at $4$th year $$10,000$ $$10,000$

a$.(4$pts$)$ If only one project can be executed, which project should be selected? Explain your

reasoning.

b$.(4$pts$)$ Which project uses more resources.