Consider projects A and B with the following cash flows:

	C0	C1	C2	C3
A	$ 36	+$ 20	+$ 20	+$ 20
B	50	+25	+25	+25

a-1. What is the NPV of each project if the discount rate is 10%?

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?