If project A has a profitability index of 1.45, and project B has a profitability index of 1.23 under the net present value method, which project should the company choose (assume that the projects are mutually exclusive)? Project A Project B If a company has a hurdle rate of 14%, and its analysis of a proposed investment yields an IRR of 12%, the company should do which of the following? Reject the proposal Conduct an NPV analysis to consider the proposal Accept the proposal, but monitor it closely Reduce the proposal value by 2% Walter's Wiggles is considering a project. The initial investment is $100,000. The estimated net annual cash flows are $20,000. What is the cash payback period for the investment? 5 years 2 years 20 years 2.5 years When does the payback period occur when cash flows are uneven? Cumulative net cash flows from the investment = cost of the investment Cumulative net cash flows from the investment cost of the investment Net cash inflows for the given year equal net cash outflows for the given year Which of the following are analysis methods that use discounted cash flows? (Select all that apply.) Net present value Internal rate of return Payback period Accounting rate of return