Late assignments will not be graded. Answers should be written individually The assignment should be clearly written on the A4 paper sheet; sloppy works will not be accepted. (Please show the calculation that you made with the formula) QUESTIONS: 1. Kenny, Inc. has identified the following two mutually exclusive projects. Project A $25,000 Year Project B $28,000 20,000 7,000 5,000 3,000 1,000 2,000 10,000 30,000 Considering 10% required return for both projects. a. Calculate the NPV for each project, which one is more profitable? Why? b. If the payback cut-off is four years, which project should be accepted? Why? C. If the Internal Rate of Return (IRR) of projects A and B are 10% and 12% respectfully, which project would you choose? Why? d. Considering 10% required return, and applying profitability index criteria which investment would you choose? Why? e. After applying the last four investment criteria, which project should be chosen for investment and why? 2. The Rolston Co. is growing quickly. Dividends are expected to grow at the 20% rate for the next three years, with the growth rate falling off to a constant 10% thereafter. If the company just paid a $3 dividend and the required return is 12%, what is the current share price