Question: 10. Note the following information on two mutually exclusive projects under consid- eration by WFM Inc. Annual Cash Flows Year Project A Project B 0

10. Note the following information on two mutually exclusive projects under

10. Note the following information on two mutually exclusive projects under consid- eration by WFM Inc. Annual Cash Flows Year Project A Project B 0 -$30,000 -$60,000 1 $10,000 $20,000 2 $10,000 $20,000 3 $10,000 $20,000 4 $10,000 $20,000 5 $10,000 $20,000 WFM requires a 14% rate of return on projects of this nature. a. Compute the NPV of both projects. b. Compute the internal rate of return on both projects. c. Compute the profitability index of both projects. d. Compute the payback period on both projects. e. Which of the two projects, if either, should WFM accept? Why

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