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Consider the following two mutually exclusive projects: Cash Flow Year 0 Cash Flow (A) -$380,000 48,000 68,000 68,000 443,000 2. 3 4 -$ 59,000 27,000

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Consider the following two mutually exclusive projects: Cash Flow Year 0 Cash Flow (A) -$380,000 48,000 68,000 68,000 443,000 2. 3 4 -$ 59,000 27,000 25,000 22,500 17,600 Whichever project you choose, if any, you require a 15% return on your investment. a-1. What is the payback period for each project? (Round the final answers to 2 decimal places.) Project A Project B Payback Period years years a-2. If you apply the payback criterion, which investment will you choose? O Project A O Project B b-1. What is the discounted payback period for each project? (Do not round Intermediate calculations. Round the final answers to 2 decimal places.) b-1. What is the discounted payback period for each project? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Project A Project B Discounted Payback Period years years b-2. If you apply the discounted payback criterion, which investment will you choose? O Project A O Project B c-1. What is the NPV for each project? (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omits sign in your response.) NPV $ Project A Project B c-2. If you apply the NPV criterion, which investment will you choose? O Project A O Project B d-1. What is the IRR for each project? (Round the final answers to 2 decimal places.) IRR Project A Project 1 d-2. If you apply the IRR criterion, which investment will you choose? O Project A O Project B e-1. What is the profitability index for each project? (Do not round intermediate calculation. Round the final answers to 3 decimal places.) Profitability Index Project A Project B e-2. If you apply the profitability index criterion, which investment will you choose? O Project A O Project B Project B e-1. What is the profitability index for each project? (Do not round intermediate calculation places.) Profitability Index Project A Project B e-2. If you apply the profitability index criterion, which investment will you choose? O Project A O Project B f. Based on your answers in (a) through (e), which project will you finally choose? O Project A O Project B

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