Consider the following two mutually exclusive projects:

Year	Cash Flow (A)				Cash Flow (B)
0	$	315,500			$	40,300
1		42,000				21,500
2		63,000				19,000
3		68,000				16,500
4		415,000				14,600

Whichever project you choose, if any, you require a 12 percent return on your investment. When evaluating projects solely on the basis of payback, the firm payback requirement for projects is 2.3 years. You do not need to show each calculator keystroke but you do need to describe how you calculated each answer. (Round your answers to 2 decimal places)

a)	What is the payback period for each project? Indicate the best project you would accept, if either, based on this criteria.

b)	What is the discounted payback period for each project? Indicate the best project you would accept, if either, based on this criteria.

c)	What is the NPV for each project? Indicate the best project you would accept, if either, based on this criteria.

d) What is the IRR for each project? Indicate the best project you would accept, if either, based on this criteria.

e)	What is the profitability index for each project? Indicate the best project you would accept, if either, based on this criteria.

f) Based on your analysis above, which project will you finally choose, and why?