Question 12 a - 3%, b-4%, C-3%, d - 3%, e-3% Total 16% Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$170,000 -$18,000 30,000 15,000 20,000 10,000 15,000 3,000 380,000 3,000 Whichever project you choose, if any, you require a 10% return on your investment. a. If you apply the payback criterion, which investment will you choose? b. If you apply the NPV criterion, which investment will you choose? c. If IRRA =31.06%, IRRB = 38.44%, which investment will you choose? d. What is profitability Index for project A and project B? e. Based on your answers (a) through (C), which project will you finally choose? Why? (Remember: show supporting calculations to support your decision)