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You are offered the chance to participate in a project that produces the following cash fows: The internal rate of return is 14.4K. a. If

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You are offered the chance to participate in a project that produces the following cash fows: The internal rate of return is 14.4K. a. If the opportunity cost of copitai is 12%, what is the net present value of the project? Note: Negative amount should be indicated by a minus sign. Do not round intermedate calcutations. Round your answer to 2 decimal places. b. Will you accept the offer? Yes No What is the profitability index of a project thot costs $10,000 and provides cash flows of $4,000 in years 1 and 2 and $6,000 in years 3 and 4 ? The discount rate is 10%. Note: Do not round intermediate calculations. Round your answer to 4 decimal places. Consider two mutually exclusive projects A and B: a. Calculate IRRs for A and B. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. b. Which project does the IRR rule suggest is best? Project A Project B c. Which project is really best? Project A Project B

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