a. If the firm is not capital constrained and the projects in Table 1 are mutually exclusive, which project should the firm undertake using the following criteria?

i. NPV

ii. IRR

iii. Payback period

iv. Discounted payback period

v. Profitability index

b. Are any of your recommendations, based on the above criteria, contradictory? Explain how that would bepossible.

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Table 1 Annual cash flows (all amounts in $millions) Year 0-1,000 Year 1 Year 21,000 Year 31,200 Year 42,500 Year 5 3,000 Project A Project B Project C Project D Project E Project F Project G 5,000 4,800 1,000 6,000 3,000 -4,000 2,000 1,500 1,000 300 500 200 8,000 2,000 2,000 8,000 2,000 2,500 -5,000 2,000 3,000 5,000 1,000 3,000 10,000 3,000 2,000 1,000 1,000 3,000 3,000 1,500 1,200 300 500