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Question 4. XYZ, Inc., has two investment proposals, which have the following characteristics: PROJECT B PROJECT A PROFIT AFTER TAXES NET CASH FLOW PERIOD PROFIT

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Question 4. XYZ, Inc., has two investment proposals, which have the following characteristics: PROJECT B PROJECT A PROFIT AFTER TAXES NET CASH FLOW PERIOD PROFIT AFTER TAXES NET CASH FLOW COST COST $9,000 $12,000 $1,000 0 1 2 3 1,000 1,000 $5,000 4,000 3,000 $1,000 1,000 4,000 $5,000 5,000 8,000 For each project, compute its payback period, its net present value, and its profitability index using a discount rate of 15 percent. (Marks 10)

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