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QUESTION 18 If Prime Score is choosing one of the following mutually exclusive projects, given a discount rate of 11%, which should the company choose?

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QUESTION 18 If Prime Score is choosing one of the following mutually exclusive projects, given a discount rate of 11%, which should the company choose? Project A Project B Time 0 -- 7,000 8,000 Time 1 5,000 4,000 Time 2 4,000 3.000 Time 3 4,000 5,000 a. Project B b. Project A c. Neither project - both have negative NPV. O d. Both projects - both have positive NPV. QUESTION 20 20 The timeline of an investment is shown below. If the cost of capital is 10.5%, what is the profitability index of this investment? Year 0 1 2 3 Cashflow -26.000 $10.750 $14.500 $13.750 O a. 0.43 b. 0.86 O c.0.22 O d. 0.54

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