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need help Problem 8-25 Profitability Index versus NPV (LO3) Consider projects A and B with the following cash flows: co -38 - 63 C +522
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Problem 8-25 Profitability Index versus NPV (LO3) Consider projects A and B with the following cash flows: co -38 - 63 C +522 + 32 C2 #522 + 32 B 522 + 32 1-1. What is the NPV of each project if the discount rate is 16%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) a-2. Which project has the higher NPV? b-1. What is the profitability index of each project? (Do not round Intermediate calculations. Round your answers to 2 decimal places) b 2. Which project has the higher profitability Index? c. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? d. Which project is most attractive to a firm that is limited in the funds it can raise? Project A Project B a-1. NPV of each project of the discount rate is 16% 3-2. Which project has the higher NPV? b-1. Profitability index of each project b-2. Which project has the higher profitability index? Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its Investment projects? 4. Which project is most attractive to a firm that is limited in the funds it can raise? cStep by Step Solution
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