Comparing Investment Criteria

Consider the following two mutually exclusive design projects using a required return of 18%:

Year	Cash flow (A)	Cash flow (B)
0	-22000	-2200
1	500	1100
2	4000	900
3	10000	1100
4	42000	4000

The NPV for Project A is $_____.

The NPV for Project B is $_____.

The IRR for Project A is __________%.

The IRR for Project B is ____%.

The PI for Project A is____.

The PI for Project B is____.

To maximize shareholder's wealth, I would chose project____.