Consider the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B)

0 -420,000 -71,000

1 72,000 31,000

2 92,000 29,000

3 72,000 26,500

4 447,000 21,600

Whichever project you choose, if any, you require a 15% return on your investment.

a. What is the NPV for each project?

b. What is the IRR for each project?

c. What is the profitability index for each project?