consider the following two mutually exclusive projects:

Year	Cash Flow (A)	Cash Flow (B)
0	$426,000	$40,500
1	43,500	20,500
2	62,500	13,200
3	79,500	19,100
4	541,000	15,900

The required return on these investments is 12 percent.

Required:

(a)

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

Project A:

Project B:

b)

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

Project A:

Project B:

(c)

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

Project A:

Project B:

(d)	What is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 3 decimal places (e.g., 32.161).) Project A: Project B: (e) Based on your answers in (a) through (d), which project will you finally choose? A or B