Consider the following two mutually exclusive projects:

Year

Cash Flow (A)

Cash Flow (B)

0

$

354,000

$

48,000

1

41,000

23,600

2

61,000

21,600

3

61,000

19,100

4

436,000

14,200

Whichever project you choose, if any, you require a return of 14 percent on your investment.

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		years
Project B		years

If you apply the payback criterion, which investment will you choose?

Project A

Project B

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

Project A		years
Project B		years

If you apply the discounted payback criterion, which investment will you choose?

Project A

Project B

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