Question: 12. Consider the following three projects for Ralco Co. This company is in the pharmaceutical industry. It currently sells several drugs, including pain relievers and

 12. Consider the following three projects for Ralco Co. This company

12. Consider the following three projects for Ralco Co. This company is in the pharmaceutical industry. It currently sells several drugs, including pain relievers and cough medicine. Project A is considered the safest project of these three, while Project is the riskiest one. There are three discount rates for capital budgeting: 6 percent for Project A, 10 percent for Project B, and 19 percent for Project C. Period Project A Project B Project C T=0 ($10,000) ($12,000) ($17.000) T-1 $2,000 $2,900 $1,900 $1,900 $1.900 $1,900 $1.900 $1,900 $1,900 $2.500 $1,900 $1.900 $2,500 $2,900 $1,900 T-6 $1,800 $2,900 1.900 T=7 $1,800 $2,900 $3.900 T 8 $1,800 $3.900 $3.900 T-9 $1,800 $4.900 $6,900 A) If you have to choose only one project under the Payback Period, which project should be chosen and explain WHY? (4 points) B) When you have only $40,000 to support the above projects, which project (or projects) should be chosen under the Net Present Value (NPV) and explain WHY? (4 points)

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