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W hat result Partial credit will be given for correct formulas of calculator inputs. If more than one answer is given per question/sub-question, that question

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W hat result Partial credit will be given for correct formulas of calculator inputs. If more than one answer is given per question/sub-question, that question will be considered as answered incorrectly and will be given zero points (50 points total). 21) Evaluation of capital budgeting projects (19 points) ABC Corporation is experiencing hard capital rationing and will not be able to invest more than $1,000,000 this year. The firm is considering four independent projects with the cash flows presented below. If the firm's annual cost of capital is 7%, answer the following questions Period 0 1 CFs of Project A S -300,0001 1 30,000 130.000 130,000 CFs of Project BSCFs of Project CSCFs of Project D, S -500,000 -200,000 -500,000 320,000 90.000 100.000 200.000 9 0,000 220,000 180,000 90,000 350,000 2 3 a) Find each project's not present value and explain what the results suggest b) Find each project's profitability index and explain what the results suggest c) Find each project's internal rate of return and explain what the results suggest d) Given the above findings, which project(s) should the firm accept and why

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