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Consider the following two mutually exclusive projects: Year a 1 2 3 4 Cash Flow (A) -$470,000 102,000 122,000 77,000 462,000 Cash Flow (B) -$

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Consider the following two mutually exclusive projects: Year a 1 2 3 4 Cash Flow (A) -$470,000 102,000 122,000 77,000 462,000 Cash Flow (B) -$ 86,000 36,000 34,000 31,500 26,600 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? Project A 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.) Project A Project B Discounted Payback Period years years b-2. If you apply the discounted payback criterion, which investment will you choose? Project A Project B c-1. What is the NPV for each project? (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) NPV Project A Project B $ c-2. If you apply the NPV criterion, which investment will you choose? c-2. If you apply the NPV criterion, which investment will you choose? Project A Project B d-1. What is the IRR for each project? (Round the final answers to 2 decimal places.) IRR Project A Project B % % d-2. If you apply the IRR criterion, which investment will you choose? Project A Project B e-1. What is the profitability index for each project? (Do not round intermediate calculation. Round the final answers to 3 decim places.) Profitability Index Project A Protiert Activ 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? ces Project A Project B f. Based on your answers in (a) through (e), which project will you finally choose? Project A Project B Activat Go to Sel

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