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 $62.5billion 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		$ (62,500,000,000)		$ (62,500,000,000)
1		$ 6,300,000,000		$ 12,300,000,000
2		$ 6,300,000,000		$ 11,400,000,000
3		$ 6,300,000,000		$ 9,600,000,000
4		$ 6,300,000,000		$ 8,800,000,000
5		$ 6,300,000,000		$ 7,900,000,000
6		$ 6,300,000,000		$ 5,900,000,000
7		$ 6,300,000,000		$ 2,800,000,000
8		$ 6,300,000,000		$ 2,500,000,000
9		$ 6,300,000,000		$ 1,000,000,000
10		$ 6,300,000,000		$ 800,000,000

(1) Calculate the payback 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