Comparing Investment Criteria $($LO$1,2,3,5,7)$ Consider the following two mutually exclusive

projects:

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?

c$.$ 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?

$f.$ Based on your answers in $($a$)$ through $($e$),$ which project will you finally choose? Why?