3.40 ± 1%2.21 ± 1%

3.87 ± 1%

c-1What is the NPV for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

If you apply the NPV criterion, which investment will you choose?

What is the IRR for each project? (Round your answers to 2 decimal places. (e.g., 32.16))

Project A% d-2If you apply the IRR criterion, which investment will you choose?18.14 ± 1%

Project Be-1What is the profitability index for each project? (Do not round intermediate calculations and roundyour final answers to 3 decimal places. (e.g., 32.161))Project Be-2If you apply the profitability index criterion, which investment will you choose?Based on your answers in (a) through (e), which project will you finally choose?Project AProject BExplanation:a.The payback period for each project is:1.173 ± 0.1%

Note: Intermediate answers are shown below as rounded, but the full answer was used to completethe calculation.CF(A)c.d.e.CFo–$350,000CFo–$350,000CFo$0C01$45,000C01$45,000C01$45,000F011F011F011C02$65,000C02$65,000C02$65,000F022F022F022C03$440,000C03$440,000C03$440,000F031F031F031I = 15%IRR CPTI = 15%NPV CPT18.14%NPV CPT$32,589.76$382,589.76PI = $382,589.76 / $350,000 = 1.093CF(B)c.d.e.CFo–$50,000CFo–$50,000CFo$0C01$24,000C01$24,000C01$24,000F011F011F011C02$22,000C02$22,000C02$22,000F021F021F021C03$19,500C03$19,500C03$19,500F031F031F031C04$14,600C04$14,600C04$14,600F041F041F041I = 15%IRR CPTI = 15%