Consider projects A and B with the following cash flows:

		C0					C1					C2					C3
A			$	29			+	$	18			+	$	18			+	$	18
B				54			+		29			+		29			+		29

a-1. What is the NPV of each project if the discount rate is 13%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) I'VE DONE IT CORRECTLY.

a-2. Which project has the higher NPV? I'VE DONE IT CORRECTLY.

b-1. What is the profitability index of each project? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 1.47 FOR PROJECT A AND 1.27 FOR PROJECT B ARE INCORRECT.

b-2. Which project has the higher profitability index? I'VE DONE IT CORRECTLY.

c. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? I'VE MARKED PROJECT B BUT THE ANSWER IS PROJECT A SO THERE IS NO PROBLEM FOR THIS QUESTION.

d. Which project is most attractive to a firm that is limited in the funds it can raise? I'VE DONE IT CORRECTLY.

Consider projects A and B with the following cash flows: 4 -$29 C1 +$18 + 29 C2 +$18 + 29 C3 +$ 18 29 B 54 18.9/30 points awarded Scored 8-1. What is the NPV of each project if the discount rate is 13%? (Do not round Intermediate calculations. Round your answers to 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? eBook References Project A Project B 13.50s 14.47 NPV of each project if the discount rate is 13% $ Which project has the higher NPV? Project B a- 1. a- 2 b- 1. b- 2. Profitability index of each project IS 1.47 $ 1.27 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? Project A Project C. B d. Project A