Project A and Project B are mutually exclusive. Calculate:

	Project A	Project B
Cost of Capital	9%	10%
Initial Investment	$120,000	$140,000
Cash Inflow Year 1	$40,000	$50,000
Cash Inflow Year 2	$50,000	$60,000
Cash Inflow Year 3	$80,000	$90,000

a. The payback period of each project.
 b. The net present value (NPV) of each project.
 c. The internal rate of return (IRR) of each project.
 d. The profitability index (PI) of each project.
 e. Recommend which project should be selected and why.