You are a financial analyst and are asked to analyze two proposed capital investments, projects HONDA and projects TOYOTA. Each project has a cost of $70billion and the required return for both projects is 14%. You must determine whether one, both or none of the projects should be accepted.

The projects expected net cash flows are as follows:

Year		Honda project		Toyota project
0		$ (70,000,000,000)		$ (70,000,000,000)
1		$ 63,000,000		$ 123,000,000
2		$ 63,000,000		$ 114,000,000
3		$ 63,000,000		$ 96,000,000
4		$ 63,000,000		$ 88,000,000
5		$ 63,000,000		$ 79,000,000
6		$ 63,000,000		$ 59,000,000
7		$ 63,000,000		$ 28,000,000
8		$ 63,000,000		$ 25,000,000
9		$ 63,000,000		$ 10,000,000
10		$ 63,000,000		$ 8,000,000

(1) Calculate the payback period, (assume 6.5 year acceptance period), NPV, IRR and profitability index for each project. (2) Choose your project(s) if (a) they are independent (b) they are mutually exclusive based on each technique (3) Draw the NPV profiles: label all relevant points