Paragraph Styles ASRAHOVAH UNIVERSITY E. Problem: (10 Marks) A company is considering two projects. The discount rate is 10 percent, and the projects' cash flows would be: Years 0 1 2 3 Project A -$700 $500 300 $100 Project B -$700 8100 8300 S600 a. Calculate the projects NPVs and IRRs. b. If the two projects are independent, which project(s) should be chosen? c. If the two projects are mutually exclusive, which project should be chosen? F. Problem: (10 Marks) b. If the two projects are independent, which project(s) should be chosen? c. If the two projects are mutually exclusive, which project should be chosen? F. Problem: (10 Marks) Suppose a company has the following three projects and limits its capital budget to $50,000. Projects Present Value of Cash Inflows Initial Investment A $40,000 $25,000 B 37,500 25.000 50.000 70,000 1. Calculate the projects' Net Present Values (NPVs). 2. Calculate the projects' Profitability Indexes (PIS). 3. Which project(s) should the company choose? Why? ENGLISH (UNITED STATES)