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After graduating from college, you received an offer from Shrek Corporation as a corporate financial analyst. Your department is currently considering two independent projects, Project

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After graduating from college, you received an offer from Shrek Corporation as a corporate financial analyst. Your department is currently considering two independent projects, Project A and Project B. The company's cost of capital is 10%. The projects have the following cash flows: Year Cash Flow (A) Cash Flow (B) 0 -500 -500 1 150 300 300 300 N 3 250 0 4 100 300 What is project A's Profitability Index (PI)? O 1.2809 O 1.1966 O 0.4552 O 1.600 After graduating from college, you received an offer from Shrek Corporation as a corporate financial analyst. Your department is currently considering two independent projects, Project A and Project B. The company's cost of capital is 10%. The projects have the following cash flows: Year Cash Flow (AL Cash Flow (B) O -500 -500 1 150 300 2. 300 300 3 250 0 4 100 300 What is the IRR of Project B? O 31.76% O 29.62% 25.28% 12.10%

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