Question: Calculate the ( a ) net present value (NPV), ( b ) profitability index (PI), and ( c ) internal rate of return (IRR) for

Calculate the (a) net present value (NPV), (b) profitability index (PI), and (c) internal rate of return (IRR) for Projects 1 and 2 (cash flows shown below), assuming a required return of 13%.

Year	Project 1	Project 2
0	-$390	$420
1	$130	$130
2	$150	$140
3	$130	$150
4	$360	$310

a.What is the NPV of Project 1? $___ (Round to the nearest cent.) What is the NPV of Project 2? $___ (Round to the nearest cent.)

b. What is the PI of Project 1? ____ (Round to two decimal places.) What is the PI of Project 2? ___ (Round to two decimal places.)

c. What is the IRR of Project 1? __% (Round to two decimal places.) What is the IRR of Project 2? __% (Round to two decimal places.)

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