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Versus NH (LO3) Consider projects A and B with the following cash flows: A B Co -$33 58 C +$17 +33 C2 +$17 C3 +$17

Versus NH (LO3) Consider projects A and B with the following cash flows: A B Co -$33 58 C +$17 +33 C2 +$17 C3 +$17 +33 +33 S a-1. What is the NPV of each project if the discount rate is 10%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) a-2. Which project has the higher NPV? b-1. What is the profitability index of each project? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b-2. Which project has the higher profitability index? c. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? d. Which project is most attractive to a firm that is limited in the funds it can raise? a-1. NPV of each project if the discount rate is 10% a-2. Which project has the higher NPV? b-1. Profitability index of each project b-2. Which project has the higher profitability index? C. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? d. Which project is most attractive to a firm that is limited in the funds it can raise? Project A Project B Problem 8-6 Profitability Index (LO3) The following are the cash flows of two projects: Year Project A Project B 0 $(330) $(330) 1 160 230 2 160 230 3 160 230 4 160 If the opportunity cost of capital is 12%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.) Answer is complete but not entirely correct. Project A B Profitability Index 108.9200 222 4200x

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