(3) Draw Project P’s NPV profile. Does Project P have normal or nonnormal cash flows?

Should this project be accepted?

k. In an unrelated analysis, you have the opportunity to choose between the following two mutually exclusive projects:

Expected Net Cash Flows Year Project S Project L 0 −$100,000 −$100,000 1 60,000 33,500 2 60,000 33,500 3 — 33,500 4 — 33,500