1. You have been asked to analyze two proposed capital investments. The information related to each project is listed below.

	Project A	Project B
Initial Cost	$150,000	$250,000
Cash Flows
Year 1	$50,000	$50,000
Year 2	$50,000	$60,000
Year 3	$50,000	$72,000
Year 4	$50,000	$86,400
Year 5	$50,000	$103,680
Salvage Value	$30,000	$15,000

1. Answer the following questions:
   • Calculate the NPV of each project. Assume a corporate cost of capital rate of 6%.
   • Calculate the IRR of each project.
   • Calculate the MIRR of each project. Assume a reinvestment rate of 8%.
   • Calculate the Profitability Index for each project.
   • Which project would your recommend? Explain your answer.