X-treme Vitamin Company is considering two investments, both of which costs $20,000.The firms cost of capital is 15%. The cash flows are as follows

Year	Project A	Project B
1	12000	10000
2	8000	6000
3	6000	16000

Show all workings please

What is the payback period for each project? Which project would you accept based on the payback period?

What is the discounted payback for each project? Which project would you accept based on the discounted payback criterion?

Calculate the NPV of each project? Whcih project would you choose based on the NPV criterion

Based on the IRR criteria which project would you choose if they were mutually exclusive ?