Part TIL. Project Selection Perez Construction has recently experienced a recent surge in demand. In order to be more productive, Perez Construction is analyzing two potential expansion projects. Option B is more costly but provides larger cash inflows. Project A and Project B are mutually-exclusive projects. Sophia Perez believes that the impact of this decision will extend out to three years. Perez Construction's required return on this project is 10 percent. Computations for Option A are provided. Complete the analysis for Option B, which is over $100,000 more costly, and identify the project that should be selected. Show work to get partial credit in situations where you have incorrect final answer. Option A Option B Initial Investment: $310,000 Initial Investment: $440,000 Year Cash Inflow Year Cash Inflow 1 $151,790 1 $210,000 2 $151,790 2 $190,000 3 S151,790 3 $180,000 I PART A. Capital Budgeting 1. Payback Method (3 points; Option A = 2.04 years): 2. Discounted Payback (4 points; Option A = 2.41 years): 3. Net Present Value (2 points; Option A - $67,479): 4. Profitability Index (l point; Option A - 1.22): 5. Internal Rate of Return (1 point, Option A = 22,0%): 6. Modified Internal Rate of Return (5 points, Option A - 17.46%): 7. In the Executive Summary, based on the information given, which project should be chosen by Perez Construction? Why? (Hint: Include discussions of time, yield, and dollars) (3 points)