Project L has a cost of $64,000. Its expected net cash inflows are $80,000 per year for 8 years. What is the project's payback period? If the cost of capital is 5%, what are the project's net present value (NPV) and profitability index (PI)? What is the project's internal rate of return (IRR)? What is the project's payback period? The project's payback period is nothing years.(Round to two decimal places.) What is the project's NPV? The project's NPV is $nothing. (Round to the nearest cent.) What is the project's PI? The project's PI is nothing. (Round to two decimal places.) What is the project's IRR? The project's IRR is nothing%. (Round to two decimal places.)

If the required rate of return on these projects is 10%, which would be chosen and why?

A.

B, because of higher NPV.

B.

A, because of higher IRR.

C.

B, because of higher IRR.

D.

A, because of higher NPV.

E.

Neither, because both have IRRs less than the cost of capital.