Consider the following two mutually exclusive opportunities:

Year	Cash Flow (A)		Cash Flow (B)
0	-511,000	-83,000
1	55,000	34,000
2	62,000	32,000
3	81,000	29,500
4	590,000	17,600

Whichever project you choose, if any, you require a 13% return on your investment. Show your work

1. (2 marks) Calculate the payback period for each project. If you apply the payback criterion, which investment will you choose?
2. (3 marks) Calculate the discounted payback period for each project. If you apply the discounted payback criterion, which investment will you choose?
3. (2 marks) Calculate the NPV for each project. If you apply the NPV criterion, which investment will you choose?
4. (2 marks) Calculate the profitability index for each project. If you apply the profitability index criterion, which investment will you choose?
5. (3 marks) Based on your answers in (a) through (e), which project will you finally choose? Why?