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Consider projects A and B with the following cash flows. 30. What is the NPV of each at 10%? 31. What is the IRR
Consider projects A and B with the following cash flows. 30. What is the NPV of each at 10%? 31. What is the IRR of each project? Year Project A Project B 0 $ (27) $ (52) 1 16 27 2 16 27 3 16 27 32. What is the Profitability Index for each project? 33. What is the Payback Period for each project? 34. The projects are mutually exclusive. Which would you choose? 35. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? 36. Which project is most attractive to a firm that is limited in the funds it can raise?
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