•  Payback Period
• Discounted Payback
• Net Present Value
• Profitability Index (Benefit-Cost Ratio)
• Internal Rate of Return
• Modified Internal Rate of Return

• Note that Project A is a Below Average risk project while Project B is of Above Average risk.
• Assume your firm is in the 40% tax bracket, and that your cost of capital is 9%.
• The firm adjusts its projects with risk adjusted discount rates to account for project risks.
• The risk schedule applied is as follows 

For the following two projects, determine the