A. Consider the following cash flows for the two investments. What are the payback periods on the two investments?

Year	Investment A	Investment B
0	-$100	-$100
1	58	31
2	73	58
3	87	180

Answer options:

Project A 1.58 years; Project B 2.06 year
Project A 1.58 years; Project B 2.53 years

Project A 1.58 years; Project B 2.06 years

Project A 1.46 years; Project B 1.89 years

B.

Consider the following cash flows for the two investments. If the interest rate is 10%, what is the profitability index (PI) of each investment?

Year	Investment A	Investment B
0	-$100	-$100
1	58	31
2	73	58
3	87	180

Answer options:

	Project A 1.784; Project B 2.113
	Project A 1.837; Project B 2.482

Project A 1.46 years; Project B 2.21 years