13. Consider the following two mutually exclusive projects available to Global Investments, Inc. C0 C1 C2 Profitability Index NPV A $1000 $1000 500 1.32 $322 B -500 500 400 1.57 285 The appropriate discount rate for the projects is 10 percent. Global Investments chose to undertake project A. At a luncheon for shareholders, the manager of a pension fund that owns a substantial amount of the firm's stock asks you why the firm chose project A instead of project B when project B has a higher profitability index. How would you, the CFO, justify your firm's action? Are there any circumstances under which Global Investments should choose project B? 14. An investment project has annual cash inflows of $7,000, $7,500, $8,000, and $8,500, and a discount rate of 14 percent. What is the discounted payback period for these cash flows if the initial cost is $8,000? What if the initial cost is $13,000? What if it is $18,000? 15. What is Budgeting? What is a Budget? Why is Budgeting so Important? Write approaches to budget , basis of budget, Compare and contrast public budgeting and Commercial sector budgeting