6 Consider the following two projects: Cash flows Project Project B -$300 -$300 130 158 C2 130 158 C3 130 158 C4 130 86680 5 01:38-42 a. If the opportunity cost of capital is 7%, which of these two projects would you accept (A, B, or both)? b. Suppose that you can choose only one of these two projects. Which would you choose? The discount rate is still 7%. c. Which one would you choose if the cost of capital is 12%? d. What is the payback period of each project? e. Is the project with the shortest payback period also the one with the highest NPV? f. What are the internal rates of return on the two projects? g. Does the IRR rule in this case give the same answer as NPV? h-1. If the opportunity cost of capital is 7%, what is the profitability index for each project? h-2. Is the project with the highest profitability index also the one with the highest NPV? h-3. Which measure should you use to choose between the projects? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A Red B ReqC Reg D ReqE ReqF ReqG ReqH1 ReqH2 Reg H3 If the opportunity cost of capital is 7%, what is the profitability Index for each project? (Round your answers to 2 decimal places.) DANIA Brinnt 6 d. Il te uppurtuny LUSL UI LAPILIIS 770, WIILIT DIESE w projects would you allepi, D, UI DULU b. Suppose that you can choose only one of these two projects. Which would you choose? The discount rate is still 7%. c. Which one would you choose if the cost of capital is 12%? d. What is the payback period of each project? e. Is the project with the shortest payback period also the one with the highest NPV? f. What are the internal rates of return on the two projects? g. Does the IRR rule in this case give the same answer as NPV? h-1. If the opportunity cost of capital is 7%, what is the profitability index for each project? h-2. Is the project with the highest profitability index also the one with the highest NPV? h-3. Which measure should you use to choose between the projects? 10 points 8 01:38:39 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Rega Reg B Regc RegD Req ReqF Reg G ReqH1 ReqH2 ReqH3 If the opportunity cost of capital is 7%, what is the profitability Index for each project? (Round your answers to 2 decimal places) Project A Project B Profitability Index 1.36 1.45 Req Reg H2>