consider the following two investment projects:

Year Investment A end of year cash flows Investment B end of year cash flows 2001 200000 100000 2002 450000 100000 2003 420000 100000 2004 610000 1000000

Both projects require an investment of 1270000 at the end of 2000. The required rate of return for both projects is 9%.

what is the operating cash flow for project a? Answer for part 1 what is the operating cash flow for b project? Answer for part 2 what is the net present value a Answer for part 3 what is the net present value for project b? Answer for part 4 what is the profitability index for project A? Answer for part 5 what is the profitability index for project B? Answer for part 6