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12. Consider the following three projects for Ralco Co. This company is in the pharmaceutical industry. It currently sells several drugs, including pain relievers and

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12. Consider the following three projects for Ralco Co. This company is in the pharmaceutical industry. It currently sells several drugs, including pain relievers and cough medicine. Project A is considered the safest project of these three, while Project is the riskiest one. There are three discount rates for capital budgeting: 6 percent for Project A, 10 percent for Project B, and 19 percent for Project C. Period Project A Project B Project C T=0 ($10,000) ($12,000) ($17.000) T-1 $2,000 $2,900 $1,900 $1,900 $1.900 $1,900 $1.900 $1,900 $1,900 $2.500 $1,900 $1.900 $2,500 $2,900 $1,900 T-6 $1,800 $2,900 1.900 T=7 $1,800 $2,900 $3.900 T 8 $1,800 $3.900 $3.900 T-9 $1,800 $4.900 $6,900 A) If you have to choose only one project under the Payback Period, which project should be chosen and explain WHY? (4 points) B) When you have only $40,000 to support the above projects, which project (or projects) should be chosen under the Net Present Value (NPV) and explain WHY? (4 points)

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