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

11 %11%.

Year

Project 1

Project 2

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0

minus$380380

minus$430430

1

$170170

$180180

2

$160160

$170170

3

$160160

$110110

4

$330330

$350350