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The Dill Corporation is considering two MUTUALLY EXCLUSIVE projects, Project A and Project B. The required rate of return is 10%. Project A costs $95,000

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The Dill Corporation is considering two MUTUALLY EXCLUSIVE projects, Project A and Project B. The required rate of return is 10%. Project A costs $95,000 and will generate $65,000 in Year 1 and $75,000 in Year 2. Project B costs $120,000 and will generate $64,000 in Year 1, then $67,000 in Year 2, $56,000 in Year 3, and $45,000 in Year 4. The IRR for Project A is: Select one: O a. 19.5% O b. 24.9% c. 29.4% d. 32.4% The Pumpkin Corporation is considering a project with the initial cash outlay of $126,000. Its cash flows after that are $44,000 in Year 1, $59,000 in Year 2, and $64,000 in Year 3. If the appropriate discount rate is 11.5%, the NPV of this project is: Select one: O a. $41,000 b. $7,089 O c. -$14,947 O d. $2,892 The PROFITABILITY INDEX of a capital budgeting proposal is calculated by: Select one: O a. dividing the present value of the annual cash flows by the cost of capital b. dividing the present value of the annual cash flows by the cash investment in the project O c.multiplying the cash inflow by the IRR O d. multiplying the IRR by the cost of capital

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