Consider the following projects: Project D E Cash Flows ($) -10,600 -20,600 C1 21,200 36,050 Assume that the projects are mutually exclusive and that the opportunity cost of capital is 11%. a. Calculate the profitability index for each project. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Project D Profitability Index 1.80 1.58 E b-1. Calculate the profitability-index using the incremental cash flows. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Profitability-index 1.34 b-2. Which project should you choose? O Project D O Project E Machines A and B are mutually exclusive and are expected to produce the following real cash flows: C3 Machine B Cash Flows ($ thousands) C1 C2 -103 +113 +124 -123 +113 +124 +136 The real opportunity cost of capital is 9%. a. Calculate the NPV of each machine. (Do not round intermediate calculations. Enter your answers in dollars not in thousands, e.g. 123,456. Round your answers to the nearest whole dollar amount.) Machine A NPV 309 A B 434 b. Calculate the equivalent annual cash flow from each machine. (Do not round intermediate calculations. Enter your answers in dollars not in thousands, e.g. 123,456. Round your answers to the nearest whole dollar amount.) Machine Cash Flow 601 A A B 75 X c. Which machine should you buy? O Machine A O Machine B