0 Data Table PUTEM. V. ME LCU, Prucu Re: Capital-Budgeting Analysis Provide an evaluation of two proposed projects, both with 5-year expected lives and identical inal outlays of $110,000 rate of return on both projects has been established at 13 percent. The expected free cash flows from each project are In evaluating these projects, please respond to the following questions Intial outlay Inflow year 1 PROJECT A -$110,000 10.000 30.000 40,000 60,000 80.000 a. Why is the capital-budgeting process so important? b. Why is it cult to find exceptionally profitable projects? G. What is the payback period on each project? If Caledonia imposes a 4-year maximum acceptable payback period, w d. What are the croicisms of the payback period e. Determine the NPV for each of these projects. Should either project be accepted? 1. Describe the logic behind the NPV. g. Determine the Prfor each of these projects. Should either project be accepted? hind the And Oman J. What is the IRR for project A? PROJECT B - $110.000 40.000 40,000 40,000 40.000 40.000 Inow year 4 Print Done % (Round to two decimal places.) the 13% required rate of rotum. (Select from the drop-down menus.) Caledonia should project A because its IRR IS What is the IRR for project B? % (Round to two decimal places.) Caledonia should project because its IRRIS the 13% required rate of rotun. (Select from the drop-down menus.) k. How does a change in the required rate of return affect the project's internal rate of return? (Select the best choice below) A The required rate of return does not change the IRR for a project, nother does it affect whether a project is accepted or rejected. OB. The required rate of return does not only change the IRR for a project, but it also affects whether a project is accepted or rejected OC. The required rate of return does change the IRR for a project, but it does not affect whether a project is accepted or rejected. D. The required rate of return does not change the IRR for a project, but it does affect whether a project is accepted or rejected. Click to select your answer(s)