Fuji Software Inc. has the following mutually exclusive projects.

Year	Project A	Project B
0	$	31,000		$	34,000
1		17,500			18,500
2		14,000			12,500
3		4,000			14,000

a-1. Calculate the payback period for each project. (Do not round intermediate calculations. Round the answers to 3 decimal places.)

	Payback period
Project A	years
Project B	years

a-2. Which, if either, of these projects should be chosen?

multiple choice 1

Project A

Project B

Both projects

Neither project

b-1. What is the NPV for each project if the appropriate discount rate is 16 percent? (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round the answers to 2 decimal places. Omit $ sign in your response.)

	NPV
Project A	$
Project B	$

b-2. Which, if either, of these projects should be chosen if the appropriate discount rate is 16 percent?

multiple choice 2

Project A

Project B

Both projects

Neither project