The Com Corporation is considering an investment in one of the two available MUTUALLY EXCLUSIVE projects. The initial cash outlay for Project 1 is $1,495 with expected cash flows of $500 per year in Years 1-5. Project 2 requires the initial cash outlay of $6,704 with expected cash flows of $2,000 per year for years 1-5. The applicable discount rate is 10%. If then firm is NOT subject to capital rationing, which project or projects should be accepted? Select one: a. Projects 1 and 2 b. Project 1 O c. Neither project is acceptable O d. Project 2 The Aubergine Corporation is considering investing in a project that requires an initial outlay of $400,000 and has a profitability index of 1.5. It is expected to generate equal annual cash flows over the next 12 years. The required return for this project is 20%. The NPV of this project is Select one: O a. $120,000 b. $80,000 O c. $200,000 O d. $600,000 Which of the following statements is CORRECT? Select one: a. Neither NPV criteria nor IRR criteria assume reinvestment of future cash flows. O b. NPV criteria for capital budgeting decisions assume that expected future cash flows are reinvested at the IRR IRR criteria assume that expected future cash flows are reinvested at IRR. O c. NPV criteria for capital budgeting decisions assume that expected future cash flows are reinvested at the IRR IRR criteria assume that expected future cash flows are reinvested at the company discount rate. O d. NPV criteria for capital budgeting decisions assume that expected future cash flows are reinvested at the company discount rate. IRR criteria assume that expected future cash flows are reinvested at IRR