Consider the following two mutually exclusive projects:

Year	Cash Flow (A)		Cash Flow (B)
0	$	423,000	$	39,000
1		45,000		20,200
2		61,000		13,500
3		78,000		17,600
4		538,000		14,400

The required return on these investments is 14 percent.

a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

	Payback period
Project A	years
Project B	years

b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

	Net present value
Project A	$
Project B	$

c. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

	Internal rate of return
Project A	$
Project B	$

d. What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.)

	Profitability index
Project A
Project B

e. Based on your answers in (a) through (d), which project will you finally choose?