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A. Based upon the IRR rule, would you Accept or Reject Project A? B.What is the Profitability Index (PI) of Project A? Based upon the

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A. Based upon the IRR rule, would you Accept or Reject Project A?

B.What is the Profitability Index (PI) of Project A? Based upon the PI rule, would you Accept or Reject Project A?

C.What is the Average Accounting Return (AAR) of Project A? Based upon the AAR rule, would you Accept or Reject Project A?

Annual Cash Flows: Net Income Net Income Year o Year 1 Year 2 Year 3 Year 4 Year 5 ($17,575,000) $3,165,122 $4,111,875 $5,000,000 $5,190,250 $5,500,000 $435,125 $642,200 $748,750 $755,000 $850,000 ($85,000,000) $15,750,000 $27,000,000 $33,125,000 $35,000,000 $6,750,000 $7,500,000 $8,500,000 $10,000,000 Required Return 8.16% 15.00% What is the Internal Rate of Return (IRR) of Project A

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