Q7 Freedom Corporation provides you with the following information about two mutually exclusive projects. The minimum required rate of return for the projects is 10%.

Year	Project A	Project B
0	-$2,400	-$7,600
1	2,800	5,600
2	600	3,600
3	400	1,600

Which project should the company accept based on:

1. the Profitability index rule? Also, briefly explain if the PI index allows for right decision. [6 points]
2. the IRR rule? Also, briefly explain if the IRR allows for the right decision [6 points]
3. the NPV rule? Also, briefly explain if the NPV allows for the right decision 6 points]
4. the Incremental IRR rule? Also, briefly explain if the Incremental rule allows for the right decision [6 points]
5. Assume now the projects are independent and the company has an investment budget of $10,000. Which project(s) should the company accept based on the PI, NPV, and IRR rules? Explain. [6 points]