About investment criteria. We have discussed about five investment criteria, including NPV, IRR, PI, AAR and Payback. a) Given that three projects are mutually exclusive and their information is as follows, which project to choose and why? NPV Project A Project B Project C $200,000 $500,000 $300,000 IRR 14% 12% 18% PI 2.0 1.5 1.6 b) List two major drawbacks of payback c) List two exceptional cases that IRR is not reliable