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1. Consider the following two mutually exclusive projects. Assume the cost of capital is 10%. a. Compute the NPV for the two projects and what

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1. Consider the following two mutually exclusive projects. Assume the cost of capital is 10%. a. Compute the NPV for the two projects and what is the decision rule? b. Compute the profitability index for the two projects and what is the decision rule? c. Compute the payback for the two projects. Suppose that the required payback is 1.9 years. What is the decision rule? d. What are the approximate IRR(s) for the two projects? (use any one of the three methods we discussed in class) e. Compute the MIRR for the two projects and what is the decision rule

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