A company has to make a choice between two projects namely A & B. The initial capital outlay of two projects are $365,000 and $568,000 respectively for A and B. There will be no scrap value at the end of the life of both the projects. The opportunity cost of capital of the company is 16%. The annual income are as under: Year Project A Project B 1 1 15,000 8,500 2 23,000 11,100 3 27,500 15,200 4 19,600 14,700 5 18,400 22,500 5 23,400 28,100 7 35,200 39,200 8 38,100 50,400 9 39,000 82,400 45,150 79,200 10 11 46,800 98,640 12 48,630 110,800 8 38,100 50,400 9 39,000 82,400 10 45,150 79,200 11 46,800 98,640 12 48,630 110,800 13 52,180 61,400 14 50,280 70,560 15 61,890 52,400 There will be additional cash outflow of $23,000 and $31,000 at the end of 8 year for project A and B respectively. Analyze which project is better for the company using following approaches: 1. Net present value 2. Payback period 3. Discounted payback period 4. Profitability index