Consider projects A and B with the following cash flows:

		C0				C1				C2				C3
A			$	41		+	$	25		+	$	25		+	$	25
B				66		+		35		+		35		+		35

a-1.	What is the NPV of each project if the discount rate is 12%? (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 or 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

b-2.	Which project has the higher profitability index? Project A or Project B

c-1.	Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? Project A or Project B

c-2.	Which project is most attractive to a firm that is limited in the funds it can raise? Project A, Project B, or Both