Kindly support your answers with appropriate calculations. Thanks.

1. Assume a $100,000 investment and the following cash flows for two alternatives. Year 1 2 3 4 5 Investment A $40,000 $30,000 $20,000 $30,000 $20,000 Investment B $40,000 $20,000 $30,000 $25,000 $15,000 a) Which of the two alternatives would you select under the payback method? b) Which of the two alternatives would you select based on the IRR method, what is the internal rate of return? c) Which of the two alternatives would you select based on the NPV method when cost of capital is 12 percent? d) Which of the two alternatives would you select under the profitability index, when cost of capital is 15 percent