Suppose r=10% per annum compounded annually. You are given the following projects:

Project	Cash flows at end of year 0	Cash flows at end of year 1	Cash flows at end of year 2
A	-10	30	5
B	-5	5	20
C	-5	5	15
D	0	-40	60

Cash flows are at the end of period.

1. Calculate NPV of each project
2. Calculate profitability index of each project (i.e. NPV per 1 dollar of investment)
3. (Which project(s) would you choose, assuming projects are not mutually exclusive? Why?
4. ) Which project would you choose, assuming projects are mutually exclusive? Why?