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Consider projects A and B with the following cash flows: A B -$30 55 C1 +$19 + 30 C2 +$19 + 30 C3 +$ 19
Consider projects A and B with the following cash flows: A B -$30 55 C1 +$19 + 30 C2 +$19 + 30 C3 +$ 19 + 30 a-1. What is the NPV of each project if the discount rate is 14%? (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 $ 14.11 Project B $ 14.65 Project B 1.47 $ $ 1.27 a-1. NPV of each project if the discount rate is 14% a-2. Which project has the higher NPV? b-1. Profitability index of each project b-2. 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? d. Which project is most attractive to a firm that is limited in the funds it can raise? Project A C
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