Project 1 has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5 years. Project 2 costs $25,000 and is expected to produce cash flows of $7,400 per year for 5 years. Assuming a cost of capital of 12%.

A.Calculate the discounted payback period

B.Calculate the NPV of the project

C.Calculate the Profitability Index for both the projects

D.If the projects are mutually exclusive which project should be selected