How do I solve this?

You are helping your company make a capital budgeting decision.

Projects A and B are mutually exclusive projects and have the following projected after-tax cash flows. The company has determined that the proper discount rate for the project is 9%.

The companys target payback period and discount payback period are 3 years and 2 years respectively.

	Project A	Project B
Year 0	(200,000)	(50,000)
Year 1	25,000	25,000
Year 2	35,000	3,000
Year 3	36,000	33,000
Year 4	210,000	40,000

Calculate the payback period, discounted payback period, net present value, internal rate of return and profitability index for each project. Based on each individual measure, which project would you recommend to Management?

Criteria	Project A Result	Project B Result	Recommendation
Payback period
Discounted payback period
Net present value
Internal rate of return
Profitability index