a) Linda Inc. has the following two projects available.

i. If the company imposes a payback cutoff of four years for its international investment projects, which project(s) should Linda Inc. accept if both projects are mutually exclusive?

ii. Calculate the NPV of the projects if the required rate of return is 8%. Which project(s) should Linda Inc. accept if both projects are independent?

Year	Cashflow ($) A	Cashflow ($) B
0	-60,000	-90,000
1	17,000	19,000
2	23,000	24,000
3	19,000	35,000
4	100,000	55,000

QB. Companies pay rating agencies such as Moody's and S&P to rate their bonds, and the costs can be substantial. However, companies are not required to have their bonds rated in the first place; doing so is strictly voluntary. Why do you think they do it?