Year	Plan A	Plan B
0	(54,000)	(23,000)
1	12,700	11,600
2	23,200	11,200
3	27,600	12,500
4	46,500	6,000
IRR	28.5%	30.94%

i. Which project will you recommend by applying the internal rates of return (IRR) criterion? Why?

ii. Apply the Net Present Value (NPV) method to determine which plan should be adopted. Explain.

iii. Apply the payback criterion to determine which plan should be adopted if the companies impose a payback cutoff of 3 years. Explain.

iv. Apply the Profitability Index (PI) criterion to determine which plan should be adopted. Explain.

v. Based on your answers in parts (i) through (iv), which plan will you finally recommend? Why?