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mot-20820168cmid-2953760&page-1 . Support Thin course Kod FIN381_03F You are tasked with assessing the performance of the following projects and to rank the projects using the

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mot-20820168cmid-2953760&page-1 . Support Thin course Kod FIN381_03F You are tasked with assessing the performance of the following projects and to rank the projects using the profitability index Project 1 The opportunity cost of capital is 8% The initial cost of the project is $500,000 and generates the following cash flows $28.00 in year 1, $178,000 in year 2. $249,000 in year 3, and $12.000 in year 4. Project 2 The opportunity cost of capital is 9%. The initial cost of the project is $480,000 and generates the following cash flows: $200.000 in year 1, $150,000 in year 2. $190,000 in year 3, and $80,000 in year 4 Project 3 The opportunity cost of capital is 7%. The initial cost of the project is 8670.000 and generates the following cash floweST SODO in year 1, $180,000 in year 2. $120,000 in year 3. and $200.000 in year 4 What is the NPV of Project 1? on Select one a. Less than 50 b. Between $0 and $25,000 e Between $25,000 and 550.000 d. Between $50,000 and $75,000 e. Greater than $75,000 What is the NPV of Project 3? SA MacBook Air & 7 9 0 6 What is the NPV of Project 3? ed on Select one: a. Less than $0 b. Between $0 and $25,000 c. Between $25,000 and $50,000 d. Between $50,000 and $75,000 e. Greater than $75,000 What is the Profitability Index of Project 2? ered 1 tion Select one: a. Less than 0.10 b. Between 0.10 and 0.20 c. Between 0.20 and 0.30 d. Between 0.30 and 0.40 e. Greater than 0.50 O 2 Ranking the projects by profitability index from highest to lowest, the rank order of the projects is: vered 1 estion @ Select one: a. 1,2,3 b. 2, 3,1 c. 3. 1.2 d. 2, 1,3 e. 1,3,2

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