Consider the following cash flows:

Year	Cash Flow
0	$31,000
1	17,300
2	15,200
3	10,600

Requirement 1:

What is the profitability index for the above set of cash flows if the relevant discount rate is 10 percent? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).)

Profitability index

Requirement 2:

What is the profitability index if the discount rate is 15 percent? (Do not round intermediate calculations.Round your answer to 3 decimal places (e.g.,32.161).)

Profitability index

Requirement 3:

What is the profitability index if the discount rate is 22 percent? (Do not round intermediate calculations.Round your answer to 3 decimal places (e.g.,32.161).)

Profitability index

Consider the following two mutually exclusive projects:

Year	Cash Flow (A)	Cash Flow (B)
0	$365,000	$40,000
1	38,000	20,300
2	47,000	15,200
3	62,000	14,100
4	455,000	11,200

The required return on these investments is 13 percent.

Required:
(a)	What is the payback period for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

	Payback period
Project A	years
Project B	years

(b)	What is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g.,32.16).)

	Net present value
Project A	$
Project B	$

(c)	What is the IRR for each project? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

	Internal rate of return
Project A	%
Project B	%

(d)	What is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 3 decimal places (e.g., 32.161).)

	Profitability index
Project A
Project B

(e)	Based on your answers in (a) through (d), which project will you finally choose?