You have identified two investment options (A and B) and plan to start one of them at the beginning of next year. Assume your discount rate is 11 percent, each projected cash flow is received at the end of the year, and both options have a regular payback period of 3.00 years. Please calculate the values listed below.

Table 1: Projected free cash flows for investment options A and B.

Year	A	B
0	Unknown	Unknown
1	15,000	18,750
2	15,000	18,750
3	7,500	18,750
4	7,500	(18,750)
5	22,500	18,750
6	22,500	18,750

For each investment option, calculate the:

1. Amount of the initial cash outlay. (2 points)
2. Net present value (NPV). (2 points)
3. Profitability Index. (2 points)
4. Internal Rate of Return (IRR). (2 points)
5. Modified Internal Rate of Return (MIRR). (2 points)