The Alexis Industries is analyzing two potential inventory expansion projects. Option B is more costly and provides larger cash inflows. Project A and Project B are mutually-exclusive projects. Inventory decisions are made every three years. Due to a soft economy. Alexis' required return is only 6.0%. Results for Option A are provided. Complete the analysis for Option B and identify the project that should be selected. Show work to get partial credit in situations where you have incorrect final answer.

Option A Initial Investment: $31,00
Year	Cash inflow
1	$15,179
2	$15,179
3	$15,179

Option B Initial Investment: $31,00
Year	Cash inflow
1	$21,000
2	$19,000
3	$18,000

1. Payback Method (4 points; Option A = 2.04 years):

2. Discounted Payback (8 points; Option A = 2.25 years):

3. Net Present Value (3 points; Option A = $9,574):

4. Profitability Index (3 points; Option A = 1.31):