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Consider projects A and B with the following cash flows: B -$41 - 66 C1 +$25 + 35 C2 +$25 + 35 C3 +$25 +
Consider projects A and B with the following cash flows: B -$41 - 66 C1 +$25 + 35 C2 +$25 + 35 C3 +$25 + 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.) 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 a 1. NPV of each project if the discount rate is 12% 19.50 X $ 18.06 a- Which project has the higher NPV? Project A b- Profitability index of each project $ 1.46 X $ 1.27 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? Which project is most attractive to a firm that is limited in the funds it can raise? Project A Project d. Project A
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