Need explainations, answers are given with capital letters

37. As the winner of a breakfast cereal competition, you are entitled to one of the following prizes: a. $1,000,000 immediately b. $90,000 per year forever C. $190,000 per year for the next ten years d. $4,000,000 payable at the end of 15 years $40,000 per year growing by 5 % forever e. Which prize should be chosen if the opportunity rate is 9 %? Which of the following statements is true for a project with $10,000 initial cost, cash inflows of $2432 per year for six years, and a discount rate of 12 %? a. Its payback period is roughly four years b. Its NPV $4,592 c. Its IRR 12% d. Its PI- 1.12 E. two of the above 38. If a project has a cost of $30,000 and a PI 1.5, then: 39. a. its cash inflows are $45,000 b. the PV of its cash inflows= $20,000 c. its IRR 50% D. its NPV- $15,000 e. two of the above You are considering two independent projects both of which have been assigned a discount 40. rate of 8%. Based on the profitability index, what is your recommendation concerning these projects? Project B Year Cash Flow -$42,000 $10,000 $40,000 Project A Year Cash Flow 0 -$38,500 $20,000 $24,000 0 1 2 1 2 You should accept both projects since both of their Pls are positive. a. You should accept project A since it has the higher PL b. You should accept both projects since both of their PIs are greater than 1. C. You should only accept project B since it has the largest PI and the PI exceeds 1. d. Neither project is acceptable. e