c. Explain why your answers in (a) / Comparing Investment Criteria (LO1, 2, 3, 5, 7) Consider the following the Cash Flow (B) Year Cash Flow (A) --- $50,000 - $350,000 0 24,000 45,000 1 22,000 65,000 2 19,500 65,000 3 14,600 440,000 4 Whichever project you choose, if any, you require a 15% return on your investment a. If you apply the payback criterion, which investment will you choose? Why? b. If you apply the discounted payback criterion, which investment will you choose! Why? Chapter 9 Net Present Value and Other investment Criteria If you apply the NPV criterion, which investment will you choose? Why? d. If you apply the IRR criterion, which investment will you choose? Why? e. If you apply the profitability index criterion, which investment will you choose? Why? answers in (a) through (e), which project will you finally choose? f Based on your Why? An investment has an installed cost of $684,680