Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ -$ 0 353,000 48,500 1 42,000 23,700 2 62,000 21,700 3 62,000 19,200 4 437,000 14,300 Whichever project you choose, if any, you require a return of 16 percent on your investment. a-1.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.) Project A Project B Payback period years years 72 If you apply the payback criterion, which investment will you choose? 2. O Project A O Project B b- What is the discounted payback period for each project? (Do not round intermediate 1. calculations and round your answers to 2 decimal places, e.g., 32.16.) b- What is the discounted payback period for each project? (Do not round intermediate 1. calculations and round your answers to 2 decimal places, e.g., 32.16.) Discounted payback period Project A Project B 3.95 years 2.97 years 62 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 and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B NPV C- 12 2. If you apply the NPV criterion, which investment will you choose? O Project A O Project B d- What is the IRR for each project? (Do not round intermediate calculations and enter 1. your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project A Project B d- 2. 12 IRR % % If you apply the IRR criterion, which investment will you choose? O Project A Project B e-1.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.) e-1.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.) Project A Project B Profitability index 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?