Q1: A financial manager is considering the following two projects. a. If the required return is 10 per cent and the projects were independent, which project(s) would be accepted? b. Using the same required return, if the projects were mutually exclusive, which project(s) would be accepted? c. How would your answers to the previous questions change, if the required return were six per cent? d. At what discount rate would one be indifferent between accepting and rejecting project A ? Q2: Based on a required return of 11 per cent, a financial manager is considering the following two mutually exclusive projects: a. If management establishes that a project's initial investment must be recovered in a maximum of three years; would one accept or reject any of these projects according to the Payback rule, PB? b. Which project should the company accept according to the Internal Rate of Return, IRR, investment rule? c. Which project should the company undertake under the Profitability Index, PI, decision rule? d. Which project should the company accept using the Net Present Value, NPV, decision rule? e. What would be your definitive recommendation to the firm's financial manager