Answer the following problem and provide solution each. Compute for Net Present Value, Payback Period, Internal Rate of Return and Profitability Index.

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1. Cummings Product Co. is evaluating the two mutually exclusive projects and expected net cash flows are as follows: Year Project A Project B 0 (P300) (P405) 1 (387) 134 2 (193) 134 3 (100) 134 st 4 600 134 5 600 134 6 850 134 7 (180) 0 REQUIRED: cost of capital is 12% Solve: NPV; PP, IRR, PI & which project is accepted? 1. Cummings Product Co. is evaluating the two mutually exclusive projects and expected net cash flows are as follows: Year Project A Project B 0 (P300) (P405) 1 (387) 134 2 (193) 134 3 (100) 134 st 4 600 134 5 600 134 6 850 134 7 (180) 0 REQUIRED: cost of capital is 12% Solve: NPV; PP, IRR, PI & which project is accepted?