Question 8 (5 points) Moira's World Music is currently considering a project that will produce cash inflows of $3,500 a year for 3 years followed by $2,000 a year for 2 more years. The cost of the project is $12,000. What is the profitability index if the discount rate is 8 percent? 0.99 1.93 0.46 2.300 Question 19 (5 points) Your firm is considering two projects that are mutually exclusive. You have computed the NPVs at the firm's required return and find the following: NPV Project A $12.896 NPV Project B $14,622 What is your recommendation? Reject both projects, Accept B. Accept A. Accept A and B. Question 20 (5 points) Saved The underlying problem with the IRR approach is that it assumes that the cash flows are reinvested at the required return. True False