Calculate the

(a)

net present value (NPV),

(b)

profitability index (PI), and

(c)

internal rate of return (IRR) for Projects 1 and 2 (cash flows shown below), assuming a required return of

9%.

Year	Project 1	Project 2
0	$440	$420
1	$160	$180
2	$170	$120
3	$190	$150
4	$310	$320

a.What is the NPV of Project 1?

?$

(Round to the nearest cent.)

What is the NPV of Project 2?

$?

(Round to the nearest cent.)

b. What is the PI of Project 1?

?

(Round to two decimal places.)

What is the PI of Project 2?

?

(Round to two decimal places.)

c. What is the IRR of Project 1?

?

(Round to two decimal places.)

What is the IRR of Project 2?

?%

(Round to two decimal places.)

Enter each answer above