Your firm has two project options and projects the following for Project A: Net investment is $75,000 and the end-of-year cash flows are as follows:

Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7
+20,000	-10,000	-25,000	+30,000	+40,000	+50,000	+80,000

If his required rate of return is 12%, based on the projected cash flows, which of the following valuation techniques should he rely on?

(1) Profitability Index

(2) NPV

(3) Payback

(4) EVA

	a.	2 only
	b.	1, 2 and 4
	c.	1 and 2
	d.	1, 2 and 3