Question: Consider projects A and B with the following cash flows: a. Which project has the higher NPV if the discount rate is 10%? b. Which

Consider projects A and B with the following cash flows:

a. Which project has the higher NPV if the discount rate is 10%?
b. Which has the higher profitability index?
c. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? Which project is most attractive to a firm that is limited in the funds it can raise?

Co C C2C -$36 +$20 +$20 +$20 - 50 25+ 25 +25

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