Update: the formula is profitability= NPV/required resource

Your company is considering an investment in the following projects (cash flows are in thousand dollars). Time (Yrs ect A ect B ect D ect E (800) S 200 $ (600) 500 S 350 S S (400) S (500) Assumptions 1. All cash flows presented in the table are received on the last day of the year 2. You can invest in fraction of projects-for example, you can invest half the cost and receive half the cash flows. 3. All the projects carry the same risk and should be discounted with the same discount rate. 250 150 S 2 200 S 200 S 300 150 S The CFO of your company has calculated the following values for the projects: ect A ect B ect E 229.00 IRR PI 36. 11% 0.3 140 a. Use Project D to show that the discount rate (cost of capital) is 16.67% per annum. Hints solve algebraically (think profitablility index) use the rate function (use the npv you just calculated) Profitability Index - NPV/Required Resource Step 1: What is the NPV of Project D?: Step 2: Use the Rate function to show the DR is 16.67% b. Complete the missing values from the first table and calculate the NPV and IRR Time (Yrs ect A ect B ct C ect D ect E (600.00) 500.00 S 350.00S (500.00) (800.00) S 200.00 S (400.00) S 250.00 150.00 S 2 450.00 300.00 200.00 S 200.00 150.00 NPV IRR c. Which project should the company choose if the projects are mutually exclusive