a. If the opportunity cost of capital is 7%, which of these two projects would you accept (A, B, or both)?

- Which projects would you accept?

b. Suppose that you can choose only one of these two projects. Which would you choose? The discount rate is still 7%.

- Which project would you choose?

c. Which one would you choose if the cost of capital is 13%?

- Which project would you choose?

d. What is the payback period of each project?

ProjA ProjB

Payback period _____ /// _____

e. Is the project with the shortest payback period also the one with the highest NPV?

- Shourtest payback would also mean highest NPV:

f. What are the internal rates of return on the two projects? (Enter your answers as a percent rounded to the nearest whole number.)

ProjA ProjB

IRR _____% /// _____%

g. Does the IRR rule in this case give the same answer as NPV?

- if cost of capital is less than Cross-over rata :

- if cost of capital is equal to or greater than Cross-over rate:

h-1. If the opportunity cost of capital is 7%, what is the profitability index for each project? (Round your answers to 2 decimal places.)

ProjA ProjB

Profitability Index _____ /// _____

h-2. Is the project with the highest profitability index also the one with the highest NPV?

Highest profitability index would also mean highest NPV:

h-3. Which measure should you use to choose between the projects?

- If capital is rationed:

- If capital is not rationed:

Could u give me just answer plz?

Problem 5-14 Investment criteria Consider the following two projects: Cash flows Project A Project B 00 -$250 -$250 105 133 105 133 105 133 105 02 03 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 13%? 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? Complete this question by entering your answers in the tabs below. Req A Req B ReqC ReqD ReqE ReqF Reg G Reg H1 Reg H2 Req H3 If the opportunity cost of capital is 7%, which of these two projects would you accept (A, B, or both)? Which projects would you accept? REGA Req B >