1. Based on PI (profitability index) rule, if they are mutually exclusive, which project(s) will you pick?

2. If the projects are mutually exclusive, which project(s) will you pick?

3. If the projects are independent, which project(s) will you pick?

Question 23 ( 2 points) Considering there are no budget constraints. You are given information on the following two projects: Project A: It has an initial investment of 10,000. Then cash flows for the subsequent 4 years are 5,000; 6,000; 7,000; and 8,000. Project B: It has an initial investment of 1,000. Then cash flows for the subsequent 4 years are 900,800,700, and 600 . Existing cost of capital is 10%