Comparing investment criteria. consider the following two mutually

     Comparing   Investment Criteria. Consider the following two mutually exclusive   projects Year Cash Flow (A) Cash Flow (B)0 (105,000) (90,000)1 17,000 36,0002   36,000 33,0003 49,000 31,0004 61,000 30.000 Whichever project you choose, if   any, you require a 15 percent return on your investment.a. If you apply the   payback criterion, which investment will you choose? Why?b. If you apply the   discounted payback criterion, which investment will you choose? Why?c. If you   apply the NPV criterion, which investment will you choose? Why?d. If you   apply the IRR criterion, which investment will you choose? Why?e. If you   apply the profitability index criterion, which investment will you choose?   Why?f. Based on your answers in (a) through (e), which project will you   finally choose? why    

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