Projects	Increase after tax Income
Project A	176112
Project B	820752
Project C	410420
Project D	121877
Projects	Payback	IRR	NPV
Project A	3.7	14.1	39919
Project B	4.4	7.2	-63926
Project C	4	12	52072
Project D	2	12	20456

a. According to the NPV method, which project should be chosen? How does this differ from the answer under the PI?

b. If Kay had not put a limit on the size of the capital budget, under the NPV method which projects would be accepted? Do the NPV and PI both reject the same project(s)? Why?

c. Given all the facts of the case, are you more likely to select Project A or C?