Use the following information for problems 1 through 5 I am considering two mutually exclusive 3yearr projects. Project A requires an investment in equipment of $120,000 and will produce net income of $20,000 per year. Project B requires an investment in equipment of $90,000 and produces net income of $16,000 per year. Each project is 3 years and requires a $5,000 investment in inventory. The firm uses straight-line depreciation and depreciates all assets to zero. The discount rate is 12%. Ignore taxes.

1. (7 points) What is the average accounting rate of return for project A? a. 16.67% b. 30.77% c. 33.33% d. 38.10% e. None of the above. Correct answer _____________________________

2. (7 points) If the NPV of project B (round to nearest dollar)? a. $ -51,571 b. $ 19,043 c. $ 20,484 d. $ 22,669 e. None of the above. Correct answer _____________________________

3. (7 points) What is the IRR of project B? a. -25.88% b. 0.00% c. 23.14% d. 24.84% e. None of the above. Correct answer _____________________________

4. (7 points) At what discount rate would I be indifferent to the two projects? a. -34.82% b. 7.01% c. 12.00% d. 18.91% e. None of the above. Correct answer _____________________________

5. (7 points) What is the profitability index of project A? a. 0.18 b. 1.00 c. 1.18 d. 1.21 e. None of the above. Correct answer _____________________________ Expert Answer

please show me step by step how to do this; i do not use excel and do not want a spreadsheet!

thank you