Consider the following three projects:

Year Alpha	Beta	Gamma
0 -1000	-100	-500
1 600	-200	200
2 400	100	250
3 100	150	250
4 50	100	200
5 0	100	100
6 0	100	-100

The cost of capital for the company is 12%.

1. If you apply the payback criterion, which project will you choose? Why? (5 points)
2. If you apply the NPV criterion, which project will you choose? Why? (5 points)
3. If you apply the IRR criterion, which project will you choose? Why? (5 points)
4. If you apply the profitability index criterion, which project will you choose? Why? (5 points)
5. Based on your answers in (1) through (4), which project will you finally choose? Why? (5 points)

Please, clearly explain each steps and show the calculation.