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1. Answer the following questions using the project cash flows presented in the following table. Assume the cost of capital is 10%. a. Project A

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1. Answer the following questions using the project cash flows presented in the following table. Assume the cost of capital is 10%. a. Project A Project B Initial Investment ($2,000.00) ($2,000.00) Year 1 $1,000.00 $0.00 Year 2 $800.00 $200.00 Year 3 $600.00 $1,200.00 Year 4 $0.00 $1,000.00 a. Compute the NPV of each project and determine for each project whether it should be accepted or rejected. b. Compute the IRR of each project and determine for each project whether it should be accepted or rejected c. Compute the payback period for each project d. Compute the discounted payback period for each project e. Compute the profitability index (PI) of each project and determine for each project whether it should be accepted or rejected o

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