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

Comparing Investment Critera Consider the following two mutally exclusive projects: Year 0 1 2 $ $ $ $ $ Cash Flow (A) (365,000) 38,000 47,000 62,000 455,000 Cash Flow (B) $ (40,000) $ 20,300 $ 15,200 $ 14,100 $ 11,200 Whichever project you choose, if any, you require a return of 13 percent on your investment. if you apply the payback criterion, which investment will you chose? Why? If you apply the NPV criterion, which investment will you chose? Why? If you apply the IRR criterion, which investment will you chose? Why? 11 if you apply the profitability index criterion, which investment will you chose? Why