Gardial Fisheries is comsidering two utuall excluie investments (if ene is selected the ether is eliminated). The prejects' expected net cash flows are as felows: Expected Ne Cash Flows Time Project A (S37 Project B (S300) S190 (5200) S190 (SI0) S199 S199 S199 S926 S190 (5200) 1. If cach project's discount rate is 12%, which project should be selected? If the discount rate is 18, what project is the proper choice? 12% diseomat rate 18% discount rate discount rate (opportunity cont)= 12% discount rate (apportunity costj I8% NPV A NPV A- NPV B NPV B A What is each preject's IRR? We find the internal rate of return with Excel's IRR function RR A- IRR - e. What is the crossover rate, and what is its significance! Cash flow Time difterential Incremental IRR rate 31 4 What is the regular pasback peried for these to projects? Project4 Time peried (30) (190 Cash lew (200) 600 5926 Payback Project Time period 31 190 190 Cash Baw 15) 190 190 Payback e. What is the prefitability index for cach project if the discount rate is 12%7 PV of fature cash flews for AI Pl of A: PV of future cash flews for B Pl of B