**Use cash flow projections below in answering question #'s 1-3** 

The following two mutually-exclusive business opportunities are currently under consideration by your firm, The Sharper Investor. The accounting department has forecasted pro forma cash flows for both projects accoding to the following table:

(each project is to be funded to require a discount rate of 15%)

Year        Cash Flow (A)       Cash Flow (B)   _

0          -$525,000           -$60,000

1             30,000             30,000

2             75,000             15,000

3             75,000              9,000

4          1,125,000              3,000

1. Discounted payback of Project A (above) equals:

2. What is Project A's Internal Rate of Return (SHOW ALL WORK)?

3. The Profitability Index for Project B equals?