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Consider projects A and B with the following cash flows: A B - $31 - 56 C1 +$20 + 31 C2 +$20 + 31 C3
Consider projects A and B with the following cash flows: A B - $31 - 56 C1 +$20 + 31 C2 +$20 + 31 C3 +$ 20 31 + a-1. What is the NPV of each project if the discount rate is 15%? (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? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 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? Project A Project B NPV of each project if the discount rate is 15% $ $ a- 1. a- 2. b- 1. Which project has the higher NPV? Profitability index of each project $ $ b- 2. c. Which project has the higher profitability index? Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? Which project is most attractive to a firm that is limited in the funds it can raise? d
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