Consider the following two mutually exclusive projects:

Year	Cash Flow (A)	Cash Flow (B)
0	$432,000	$43,500
1	40,500	21,100
2	65,500	12,600
3	82,500	22,100
4	547,000	18,900

Return on your investment is 13 percent.

Required:
(a)	What is the payback period for each project?

	Payback period
Project A	years
Project B	years

(b)	What is the NPV for each project?

	Net present value
Project A	$
Project B	$

(c)	What is the IRR for each project?

	Internal rate of return
Project A	%
Project B	%

(d)	What is the profitability index for each project?

	Profitability index
Project A
Project B

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