Fuji Software Inc. has the following mutually exclusive projects.

Year	Project A		Project B
0	$	15,000	$	18,000
1		9,500		10,500
2		6,000		7,000
3		2,400		6,000

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 15 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 15 percent?

multiple choice 2

• Project A

• Project B

• Both projects

• Neither project