Your firm has estimated the following cash flows for two mutually exclusive capital investment projects. The firm's required rate of return is 10%. Year Project A Cash Flow Project B Cash Flow 0 -S165.000 -$350.000 1 55,000 120,000 2 55,000 120,000 3 55,000 110,000 4 50.000 110.000 45,000 90,000 6 45,000 60,000 Which of the following is closest to the profitability index of project A? Your firm has estimated the following cash flows for two mutually exclusive capital investment projects. The firm's required rate of return is 12%. Year Project A Cash Flow Project B Cash Flow 0 -$168,000 -$168,000 1 84,000 10,000 2 78.400 22,000 3 78.400 22,000 4 14.000 98.000 5 14,000 120.000 6 11.200 120.000 What is the Profitability Index of project B? Which of the following statements best describes projects A and B? Oa b Due to size disparity. IRR indicates that Bis best and NPV indicates that A is best. Both NPV and IRR lead to the same investment decision. Due to time disparity, IRR indicates that A is best and NPV indicates that B is best. Due to time disparity. IRR indicates that B is best and NPV indicates that A is best. Due to size disparity, IRR indicates that A is best and NPV indicates that is best. O