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1. You are considering two independent projects with the following cash flows. The required return for both projects is 10%. Compute the NPV and IRR

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1. You are considering two independent projects with the following cash flows. The required return for both projects is 10%. Compute the NPV and IRR of the two projects. Which project will you choose? Year Project A Project B $950,000 S125,000 S330,000 S 400,000 S S450,000 S 50,000 S 50,000 2. 2. What is the profitability index for an investment with the following cash flows given a 9% required return? Will you accept the project based on the profitability index? Cash Flow $21,500 7400 S9,800 S 8,900 Year

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