Problem $9\mathrm{.}17$ Comparing Investment Criterla $[$LO$1,2,3,5,7]$

Consider the following two mutually exclusive projects:

Whichever project you choose, if any, you require a return of $15$ percent on your

Investment.

a$-1.$ What is the payback perlod for each project? $($Do not round intermediate

calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

$2$ a$-$ If you apply the payback criterlon, which Investment will you choose?

Project $A$

Project B

b$-$ What is the discounted payback perlod for each project? $($Do not round Intermedlate

calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$-$

$2$

If you apply the discounted payback criterion, which investment will you choose?

Project $A$

Project B

c$-1.$ What is the NPV for each project? $($Do not round intermedlate calculations and

round your answers to $2$ decimal places, e$.$g$..32\mathrm{.}16.)$ C$-$ If you apply the NPV criterion, which investment will you choose?

Project A

Project B

d$-$ What is the IRR for each project? $($Do not round intermediate calculations and enter

your answers as a percent rounded to $2$ decimal places, e$.$g$..3216.)$

d$-$ If you apply the IRR criterlon, which Investment will you choose?

Project A

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$..32161.)$

e$-$ If you apply the profitability index criterion, which investment will you choose?

Project A

Project B

f$.$ Based on your answers in $($a$)$ through $($e$).$ which project will you finally choose?