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The director of capital budgeting for a firm has identified two mutually exclusive projects, A and B, with the following expected net cash flows: Expected

The director of capital budgeting for a firm has identified two mutually exclusive projects, A and B, with the following expected net cash flows: Expected Net Cash Flows Year Project A Project B 0 ($120) ($120) 1 80 20 2 60 70 3 30 90 Both of the projects have a cost of capital of 14 percent. (i) What is Project A's and Project Bs net present value (NPV)? (4 points) NPV for A = ____________________. NPV for B = ____________________. (ii) What is the profitability index (PI) for Project B? (3 points) Profitability Index for B = ____________________. (iii) What is the modified internal rate of return for Project A? (3 points) MIRR for Project A = ____________________.

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