Part A: Calculate the net present value for project A. (Round to 2 decimals)

Part B: Calculate the profitability index for the project B. (Round to 3 decimals)

Part C: Calculate the payback period for project B. (Round to 3 decimals)

Part D: Based on the information provided the firm should:

- Accept Both Projects

- Accept Project B

- Accept Project A

- Reject Both Projects

Titan Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 6%. Year Project A Project B 0 -1,500,000 -750,000 250,000 1 475,000 2 250,000 475,000 3 250,000 475,000 4 250,000 475,000