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Answers for b-1. and c. are incorrect as you can see below, what is the correct solution? For c, i have 3 options: Project B,

image text in transcribedAnswers for b-1. and c. are incorrect as you can see below, what is the correct solution? For c, i have 3 options: Project B, Project A or Both.

image text in transcribed

Consider projects A and B with the following cash flows: A B -$32 - 57 C1 +$ 16 + 32 C2 +$ 16 + 32 C3 +$ 16 + 32 a-1. What is the NPV of each project if the discount rate is 12%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) a-2. Which project has the higher NPV? b-1. What is the profitability index of each project? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b-2. Which project has the higher profitability index? c. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? d. Which project is most attractive to a firm that is limited in the funds it can raise? a-1. NPV of each project if the discount rate is 12% a-2. Which project has the higher NPV? b-1. Profitability index of each project b-2. Which project has the higher profitability index? Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? d. Which project is most attractive to a firm that is limited in the funds it can raise? Project A Project B $ 6.43 $ 19.86 Project B $ 1.20 $ 1.35 Project B Project B Project B decimal places.) a-2. Which project has the higher NPV? b-1. What is the profitability index of each project? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b-2. Which project has the higher profitability index? c. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? d. Which project is most attractive to a firm that is limited in the funds it can raise? Project B 19.86 $ X Answer is complete but not entirely correct. Project A NPV of each project if the discount rate is 12% 6.43 Project B 1.20 $ 1.35 Which project has the higher NPV? Project B Profitability index of each project Project Project B S Which project has the higher profitability index? Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? Which project is most attractive to a firm that is limited in the funds it can raise

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