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5, Profitability index Compare the following cash flows for two projects with RROR of 7%; Year Project X $342.000 153.000 103,000 148,000 Project Y $50,500

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5, Profitability index Compare the following cash flows for two projects with RROR of 7%; Year Project X $342.000 153.000 103,000 148,000 Project Y $50,500 24.800 22,800 20,300 A. What is the PI for Project X and Project Y? If these two projects are NOT mutually exclusive, what is your investment decision? B. If these two projects are mutually exclusive, what is your investment decision? 6. Mutually exclusive project valuation Consider the following cash flows for two mutually exclusive projects Project X -$20.100 8.875 9,150 8,825 Year Project Y $20,100 10,150 7,825 8,725 A. What is the IRR for Project X and Project Y? B. what is the NPV for these two projects if RROR is 8%? C. Which project to choose

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