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please help! Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ -$ o 359,000 45,500 1 36,000 23.100 2

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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ -$ o 359,000 45,500 1 36,000 23.100 2 56,000 21,100 3 56,000 18,600 4 431,000 13,700 Whichever project you choose, if any, you require a return of 14 percent on your investment a-1.What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B Payback period 3.00 years years on If you apply the payback criterion, which investment will you choose? O Project A O Project B b- What is the discounted payback period for each project? (Do not round intermediate 1. calculations and round your answers to 2 decimal places, e.g., 32.16.) Discounted payback period years Project A Project B years 5 b- 2. If you apply the discounted payback criterion, which investment will you choose? O Project A O Project B c-1. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) NPV Project A Project B un If you apply the NPV criterion, which investment will you choose? Project B O Project A d. What is the IRR for each project? (Do not round intermediate calculations and enter 1. your answers as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Project A Project B % % If you apply the IRR criterion, which investment will you choose? 2. O Project A O Project B e-1. What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Profitability index Project A Project B If you apply the profitability index criterion, which investment will you choose? 2. O Project A O Project B f. Based on your answers in (a) through (e), which project will you finally choose? Project B

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