5. Odums, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $35,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $51,000 in year three, and $15,000 in year four. The firm's required rate of return for these projects is 10%. The net present value for Project A is______________. (3 points)

6. Odums, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $35,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $51,000 in year three, and $15,000 in year four. Odums, Inc.'s required rate of return for these projects is 10%. The profitability index for Project B is__________________. (3 points)

Part III

Parker Quilters is considering a project with the following cash flows:

Initial Outlay = $126,000

Cash Flows:	Year 1 = $44,000
	Year 2 = $22,000
	Year 3 = $64,000

7. If the appropriate discount rate is 11%, compute the NPV of this project. (2 points)