Verge Ltd. is considering two mutually exclusive projects with the following cash flows:

Cash flows in Year	Project A	Project B
0 1 2 3 4 5 6	-$400,000 $120,000 $120,000 $120,000 $80,000 $80,000 -	-$450,000 $90,000 $90,000 $120,000 $120,000 $120,000 $120,000

The companys required rate of return is 9% p.a. For both projects, calculate the following:

(a) The payback period

(b) The profitability index (PI)

(c) The internal rate of return (IRR)

(d) The net present value (NPV)

(d) Which project should Verge Ltd. select?