Consider the following two mutually exclusive projects:

Year	CF of Project A	CF of Project B
0	-$350,000	-$50,000
1	45,000	24,000
2	65,000	22,000
3	65,000	19,500
4	440,000	14,600

Whichever project you choose, if any, you require a 15 percent return on your investment.

a)If you apply the payback (PB) criterion, which investment will you choose? Why?

b)If you apply the NPV criterion, which investment will you choose? Why?

c)If you apply the IRR criterion, which investment will you choose? Why?

d)If you apply the profitability index (PI) criterion, which investment will you choose? Why?

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

Capital Budgeting Criteria	Project A	Project B	Project Chosen	Decision Rule
Payback (PB)
NPV
IRR
PI

Thank you in advance!