Consider the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B)

0 $ 344,000 $ 49,000

1 51,000 24,600

2 71,000 22,600

3 71,000 20,100

4 446,000 15,200

b-1. What is the discounted payback period for each project? Project A Project B

c-1. What is the NPV for each project?

Project A Project B d-1. What is the IRR for each project? Project A Project B e-1. What is the profitability index for each project? Project A Project B

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