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? $(2$ marks$)$

b$)$ If you apply the discounted payback criterion, which investment will you choose? Why? $(2$

marks$)$

c$)$ If you apply the NPV criterion, which investment will you choose? Why? $(3$ marks$)$

d$)$ If you apply the profitability index criterion, which investment will you choose? Why? $(2$

marks$)$

e$)$ If you apply the IRR criterion, which investment will you choose? Why? $(2$ marks$)$

f$)$ What is the cross$-$over rate for these two mutually exclusive projects? $(3$ marks$)$

Based on your answers in $($a$)$ through $($e$),$ which project will you finally choose? Why? $(2$ marks$)$