If an independent decision criterion is used, which project should be selected?

If a mutually exclusive decision criterion is used, which project should be selected?

Calculate the profitability index for project b-12 and project f-4.

Calculate the payback period for project b-12 and project f-4.

Please write out answer.

Moulton Industries has two potential projects for the coming year, Project B-12 and Project F-4. If the firm is assuming a 10% discount rate, which project has a higher NPV? Cash Flow Project B-12 Project F-4 Year 0 -$4,250,000 -$3,800,000 Year 1 $2,000,000 $ 0 Year 2 $2,000,000 $1,000,000 Year 3 $2,000,000 $1,500,000 Year 4 $ 0 $2,000,000 Year 5 $ O $2,500,000