PART B to the question

Assume the firm can either take Project A or Project B. Project A will require the initial investment of $110,000 and will yield $31,000 at Year 1,$35,500 at Year 2, \$36,000 at Year 3,$27,000 at Year 4,$47,000 at Year 5 , and $37,500 at Year 6. Project B will require the initial investment of $120,000 and yield $20,000 at Year 1,$30,000 at Year 2,$40,000 at Year 3,$35,000 at Year 4 , $50,000 at Year 5 , and $60,000 at Year 6 . If the interest/discount rate that applies to both project is 11.5%, which of these two projects is a better option if the decision is made based on the Net Present Value (NPV) basis? Project A Project B There is no difference There is insufficient information to make a decision Same facts above: what if the decision is made based on the Profitability Index basis? Project A Project B There is no difference There is insufficient information to make a decision