Question 9

Consider the following two mutually exclusive projects:

Year	Cash Flow (A)	Cash Flow (B)
0	-$50,000	-$25,000
1	$25,000	$10,000
2	$10,000	$10,000
3	$10,000	$10,000
4	$20,000	$5,000

Whichever project you choose, if any, you require a 10 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?

Group of answer choices

A; A; A; A; A

A; B; A; A; A

B; A; A; A; A

A; B; B; B; B

B; B; B; B; B