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Question is attached below in word document. Please see attached file Consider projects A and B with the following cash flows: A B C0 $
Question is attached below in word document. Please see attached file
Consider projects A and B with the following cash flows: A B C0 $ 35 60 C1 + $ 19 + 35 C2 + $ 19 + 35 C3 + $ 19 + 35 a-1. What is the NPV of each project if the discount rate is 15%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Project A B NPV $ $ a-2. Which project has the higher NPV? Project B Project A b-1. What is the profitability index of each project? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Project Profitability index A B b-2. Which project has the higher profitability index? Project B Project A c-1. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? Project B Project A c-2. Which project is most attractive to a firm that is limited in the funds it can raise? Project B Project A Both rev: 03_16_2015_QC_CS-10561 Question No a1 a2 b1 b2 c1 c2 Answer Project A NPV is 8.38 ProjectB NPV is 19.91 Project B PI for Project A is 1.239 PI for Project B is 1.332 Project B Project B Project AStep by Step Solution
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