Your Company is evaluating the following two projects shown below. The correct discount rate is 10% Project: B Initial Investment -60 -50 CF1 23 28 CF2 25 16 CF3 10 20 a) Defined and calculate NPV, IRR and Profitability Index for each project. Which project you pick for each criteria? b) What types of problems the IRR rule has? Explain? c) What types of problems the payback rule has? Explain? d) What is capital rationing? How many type we have? d) Which project would you pick using IRR if we have capital rationing? Explain? e) Look at the textbook for more problems to practice