Consider the following two mutually exclusive projects:

Year Cash Flow $($A$)$ Cash Flow $($B$)$

$0$$ $410,000$$ $86,000$

$1102,00048,000$

$277,00034,000$

$377,00031,500$

$4462,00026,600$

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.$)$

Payback Period

Project A years

Project B years

a$-2.$ If you apply the payback criterion, which investment will you choose?

multiple choice $1$

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.$)$

Discounted Payback Period

Project A years

Project B years

b$-2.$ If you apply the discounted payback criterion, which investment will you choose?

multiple choice $2$

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?

multiple choice $3$

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?

multiple choice $4$

Project A

Project B

e$-1.$ What is the profitability index for each project? $($Do not round intermediate calculation. Round the final answers to $3$ decimal places.$)$

Profitability Index

Project A

Project B

e$-2.$ If you apply the profitability index criterion, which investment will you choose?

multiple choice $5$

Project A

Project B

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

multiple choice $6$

Project A

Project B