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Question #5 (16 points) Please answer the following: a) (10 points) Calculate the IRRs, NPVs, and PIs for the 2 projects above (Place the answers
Question \#5 (16 points) Please answer the following: a) (10 points) Calculate the IRRs, NPVs, and PIs for the 2 projects above (Place the answers in the appropriate boxes; if needed, use a discount rate of 10% ). If these are mutually exclusive projects, what investment recommendation would you make about these 2 projects and why? b) (6 points) Having studied the net present value (NPV) and the profitability index (PI) during our sessions, briefly list/explain what "information" (similar and/or different information) the NPV and the PI provide to the user (i.e. the numbers you calculated are the answers to what questions about value) - in short, what do each of the 2 methods tell you (compare and contrast - don't simply define how to calculate). Under what circumstances would you use one criteria over the other or both
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