The following cash flows are projected for two projects:

Calculate the results of the following investment appraisal techniques.

Comment in each instance which project should be undertaken, if these are

mutually exclusive projects:

Net present value at $12\%$ discount factor

Profitability index at $12\%$ discount factor.

Comment on the results calculated in Question $($i and ii$)$ and indicate why

they are in agreement or why they differ.

How would your recommendations at Question $($j and ii$)$ differ if these two

projects were independent and not mutually exclusive?