Consider projects A and B with the following cash flows: A Co -$ 44 C1 C2...

 

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Consider projects A and B with the following cash flows: A Co -$ 44 C1 C2 C3 +$ 28 +$ 28 +$ 28 B -69 +38 +38 +38 a-1.What is the NPV of each project if the discount rate is 12% ? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a-2. Which project has the higher NPV? b-1. What is the profitability index of each project? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a-2. Which project has the higher NPV? b-2. Which project has the higher profitability index? c. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? d. Which project is most attractive to a firm that is limited in the funds it can raise? carait a-1. NPV of each project if the discount rate is 12% a-2. Which project has the higher NPV? b-1. Profitability index of each project b-2. Which project has the higher profitability index? c. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? d. Which project is most attractive to a firm that is limited in the funds it can raise? Project A Project B Consider projects A and B with the following cash flows: A Co -$ 44 C1 C2 C3 +$ 28 +$ 28 +$ 28 B -69 +38 +38 +38 a-1.What is the NPV of each project if the discount rate is 12% ? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a-2. Which project has the higher NPV? b-1. What is the profitability index of each project? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a-2. Which project has the higher NPV? b-2. Which project has the higher profitability index? c. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? d. Which project is most attractive to a firm that is limited in the funds it can raise? carait a-1. NPV of each project if the discount rate is 12% a-2. Which project has the higher NPV? b-1. Profitability index of each project b-2. Which project has the higher profitability index? c. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? d. Which project is most attractive to a firm that is limited in the funds it can raise? Project A Project B

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To calculate the Net Present Value NPV of each project we will use the formula NPV Ct 1rt Co Where C... View the full answer