Consider projects A and B with the following cash flows:

C0 C1 C2 C3 A $ 32 +$ 16 +$ 16 +$ 16 B 57 +32 +32 +32 a-1.What is the NPV of each project if the discount rate is 12%?

Note: 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?

Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

a-2. Which project has the higher NPV?

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?