Youare 25 years old. Everyday, you spend $4 on stuff you can without (coffee, cigarettes, pop, beer, wine, fried food, ice cream, you get the idea). Because you took my class, you've decided to stop one these habits (you decide which one to quit). If you invest these savings into a savings accounts for the next 45 years, how much money will have saved toward retirement? You invest the money monthly and it earns 8.125% compounded monthly. HINT: For this calculation, each month has exactly 30 days.

YEAR	CashFlow LBD	Cash Flow LOD
0	-105,000	-105,000
1	54,000	21,000
2	45,000	35,000
3	25,000	45,000
4	15,000	60,000
The hurdle rate is 15%.
Use the table above to answer questions 13-16. 13. What is the profitability index on LOD? 14. NPV a. For LBD? b. For LOD? 15. IRR a. For LBD? b. For LOD? 16. The projects are mutually exclusive. Which project should you select and WHY?
						16.	The projects are mutually exclusive. Which project should you select and WHY?