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106) Consider the following two mutually exclusive projects: 14 Year Cash Flow (A) - 54,000 12,700 23,200 27,600 46,500 Cash Flow (B) -$ 23,000 11,600

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106) Consider the following two mutually exclusive projects: 14 Year Cash Flow (A) - 54,000 12,700 23,200 27,600 46,500 Cash Flow (B) -$ 23,000 11,600 11,200 12,500 6,000 0 1 2 3 4 Whichever project you choose, if any, you require a rate of return of 14 percent on your investment. If you apply the payback criterion, you will choose Project IRR criterion, you will choose Project Based on your first four answers, which project will you finally choose? ) A;B ; ; ; ) A; ;B B; ; C) A;B ; ; ; D) B;B A; B; ; E) ; ; ; B; ; if you apply the NPV criterion, you will choose Project ; if you choose the profitability index criterion, you will choose Project ; if you apply the

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