17) You are considering two independent projocts both of which have been assigned a discount rate of 15% percent. Based on the project NPw.what is your recommendation concerning these projects? Cash Flow Year Cash Flow s18400 S35,000 a) You should accept both projects. You should reject both projects. co You should accept project Band reject project A. d0 You should accept Project A and reject project B. e You should accept project A and be indifferent to project B. 18 The intermal rate return is defined as the: maximum rate of return a firm expects to eam on a project. b) rate of return a project will generate if the project in financed solely with internal funds. c rate that equates the net cash inflows ofa project zero. rate at which the net present value of a project is equal zero. rate that causes the profitability index for a project to equal zero, Use the information in the table above for the following squestions. A capitalinvestment project is estimated to have the following aner-tax cash flows, by year: 0 2 3 ES30,000 SS00 S12500 SS 000 SIS 000 The company utilizes a discount rate of 10% evaluate capital projects. You may have rounding errors in your calculations so choose the closest answer. Assume cash flows occur evenly over the year. 19 The PAYBACK for the project shown above is a 2.16 b) 3.33 c) 3.15 d) 2.50 e) 4.50