21) Evaluation of capital budgeting projects (15 points) ABC Corporation is experiencing hard capital rationing and will not be able to invest more than $1.000.000 this year. The firm is considering four independent projects with the cash flows presented below. If the firm's annual cost of capital is 7%, answer the following questions: Period CFs of Project A, S CFs of Project B, $ -300,000 -500,000 130,000 320,000 130.000 200.000 130,000 180,000 CFs of Project CS CFs of Project D. S -200.000 -500.000 90,000 100 000 90,000 220.000 90.000 350,000 a) Find each project's net present value and explain what the results suggest (4 points) b) Find each project's profitability index and explain what the results suggest (4 points) c) Find each project's internal rate of return and explain what the results suggest (4 points) d) Given the above findings, which project(s) should the firm accept and why? (3 points) Note: Your explanation should be based on the figures you got and what it means for ABC corporation. Not definitions of NPV, Pi, IRR. You don't have to show your workings, give your answer and explain what it means for ABC. arch Si ha 500