Consider the following two mutually exclusive projects:

Year	Cash Flow(A)	Cash Flow(B)
0	-52000	-50000
1	45000	25000
2	50000	40000
3	65000	19500

Whichever project you choose, if any, you require a 12 percent return on your investment.

• Use payback period criterion and make a choice. Payback period for project A _____ ; Payback period for project B _____
• Using discounted payback period criterion, make a choice. Discounted payback period for project A _____; Discounted payback period for project B ______
• What is the choice when you use NPV? NPV for project A _____, NPV for project B _____
• How about IRR? IRR for project A _____ , IRR for project B _____
• PI? PI for project A _____ , PI for project B _____
• Final decision... Overall which project will you choose? _____