A: if apply the payback criterion, which investment will you choose? Why?

B: if you apply the NPV criterion, which investment will you choose? Why?

Comparing Investment Criteria [LO1, 2, 3, 5, 7] Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $455,000 58,000 85,000 85,000 572,000 $65,000 31,000 28,000 25,500 19,000 4 Whichever project you choose, if any, you require a return of 11 percent on your investment