22. You are considering two independent projects with the same discount rate of 11 percent. Project A costs $284,700 and has cash flows of $75,900,$106,400, and $159,800 for Years 1 to 3, respectively. Project B costs $115,000, and has a cash flow of $50,000 per year for Years 1 to 3. You have sufficient funds to finance any decision you make. Which project or projects, if either, should you accept and why? A) Project A; because it is the larger-sized project with a positive IRR B) Project A; because it has the larger NPV C) Neither project; because their NPVs are less than their initial costs D) Project B; because its IRR exceeds the discount rate E) Both projects; because their NPVs are both positive 23. Write On! has a proposed project with an initial cost of $101,000 and cash flows of $74,000 per for Years 1 to 5. At the end of the Year 5 there will be an additional net cash inflow of $68,000. Based on the profitability index rule, should the project be accepted if the discount rate is 12.5 percent? Why or why not? A) Yes; because the PI is 2.2 B) Yes; because the PI is 3.0 C) Yes; because the PI is 2.6 D) No; because the PI is 0.8 E) No; because the PI is 3.3 24. Jaime is evaluating two independent projects. Project A costs $74,600 and has projected cash flows of $18,700, $46,300, and $12,200 for Years 1 to 3, respectively. Project B costs $70,000 and has cash flows of $10,600,$15,800, and $67,900 for Years 1 to 3, respectively. Jaime assigns a discount rate of 10 percent to Project A and 12 percent to Project B. Which project or projects, if either, should he accept based on the profitability index rule? A) Accept both projects. B) Accept Project A and reject Project B. C) Accept either A or B, but not both. D) Reject both projects. E) Accept Project B and reject Project A