Consider projects A and B with the following cash flows:

		C0				C1				C2				C3
A			$	38		+	$	22		+	$	22		+	$	22
B				63		+		32		+		32		+		32

a-1.	What is the NPV of each project if the discount rate is 16%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Project	NPV
A	$
B	$

a-2.

Which project has the higher NPV?

	Project A
	Project B

b-1.	What is the profitability index of each project? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Project	Profitability index
A
B