Consider the following two projects Cash flow ce C1 Project Projects -$280 -5280 148 120 148 120 148 120 a. If the opportunity cost of capital is 11%, which of these two projects would you accept (A, B, or both)? b. Suppose that you can choose only one of these two projects. Which would you choose? The discount rate is still 11% c. Which one would you choose if the cost of capital is 16%? d. What is the payback period of each project? e. Is the project with the shortest payback period also the one with the highest NPV? f. What are the internal rates of return on the two projects? g. Does the IRR rule in this case give the same answer as NPV? h-1. If the opportunity cost of capital is 11%, what is the profitability index for each project? h-2 Is the project with the highest profitability Index also the one with the highest NPV? h-3. Which measure should you use to choose between the projects? Complete this question by entering your answers in the tabs below. Reg A ReqB Reg C Reg D Rege ReqF Req G Reg H1 Reg H2 Req H3 If the opportunity cost of capital is 11%, which of these two projects would you accept (A, B, or both) Which projects would you accept? Consider the following two projects: Cash flows Project A Project B -$280 -$280 120 148 120 148 220 148 120 a. If the opportunity cost of capital is 11%, which of these two projects would you accept (A, B, or both)? b. Suppose that you can choose only one of these two projects . Which would you choose? The discount rate is still 11% c. Which one would you choose if the cost of capital is 16%? d. What is the payback period of each project? e. Is the project with the shortest payback period also the one with the highest NPV? What are the internal rates of return on the two projects? g. Does the IRR rule in this case give the same answer as NPV? h-1. If the opportunity cost of capital is 11%, what is the profitability index for each project? h-2. Is the project with the highest profitability index also the one with the highest NPV? h-3. Which measure should you use to choose between the projects? Complete this question by entering your answers in the tabs below. ReqA ReqB Reqc Reg D Reg E ReqF Req G Reg H1 Reg H2 Reg H 3 Suppose that you can choose only one of these two projects. Which would you choose? The discount rate is still 11%. Which project would you choose? Consider the following two projects: Cash flows OOOO Project A Project B -$280 -$280 120 148 120 148 120 148 120 a. If the opportunity cost of capital is 11%, which of these two projects would you accept (A, B, or both)? b. Suppose that you can choose only one of these two projects. Which would you choose? The discount rate is still 11% c. Which one would you choose if the cost of capital is 16%? d. What is the payback period of each project? e. Is the project with the shortest payback period also the one with the highest NPV? f. What are the internal rates of return on the two projects? 9. Does the IRR rule in this case give the same answer as NPV? h-1. If the opportunity cost of capital is 11%, what is the profitability index for each project? h-2. Is the project with the highest profitability index also the one with the highest NPV? h-3. Which measure should you use to choose between the projects? Complete this question by entering your answers in the tabs below. Reg A Reg 8 Reg C Reg D ReqE ReqF Req G Reg H1 Reg H2 Reg H3 Which one would you choose if the cost of capital is 16%? Which project would you choose? Consider the following two projects Cash flows Ce Project A -$280 120 120 120 120 Project 6 -$280 148 148 148 C a. If the opportunity cost of capital is 11%, which of these two projects would you accept (A, B, or both)? b. Suppose that you can choose only one of these two projects. Which would you choose? The discount rate is still 11% c. Which one would you choose if the cost of capital is 16%? d. What is the payback period of each project? e. Is the project with the shortest payback period also the one with the highest NPV? f. What are the internal rates of return on the two projects? g. Does the IRR rule in this case give the same answer as NPV? h-1. If the opportunity cost of capital is 11%, what is the profitability index for each project? h-2. Is the project with the highest profitability index also the one with the highest NPV? h-3. Which measure should you use to choose between the projects? Complete this question by entering your answers in the tabs below. Reg A Reg B Reg C ReqD ReqE Reg F Reg G ReqH1 Reg H2 Req H3 What is the payback period of each project? Project A Project B Payback Poriod Dc Dar Consider the following two projects Project A Project B -$280 Cash flows ce 12e 120 -$280 148 148 148 C 120 120 6. If the opportunity cost of capital is 11%, which of these two projects would you accept (A, B, or both)? b. Suppose that you can choose only one of these two projects. Which would you choose? The discount rate is still 11% c. Which one would you choose if the cost of capital is 16%? d. What is the payback period of each project? e. Is the project with the shortest payback period also the one with the highest NPV? f. What are the internal rates of return on the two projects? 9. Does the IRR rule in this case give the same answer as NPV? h-1. If the opportunity cost of capital is 11%, what is the profitability index for each project? h-2. is the project with the highest profitability index also the one with the highest NPV? h-3. Which measure should you use to choose between the projects? Complete this question by entering your answers in the tabs below. Rega ReqB Reg C ReqD Reg E ReqF Req Reg H1 Reg H2 Req H3 Is the project with the shortest payback period also the one with the highest NPV? Shortest payback would also mean highest NPV Consider the following two projects: Cash flows ca Project A -$280 120 120 120 120 Project B -$280 148 148 148 a. If the opportunity cost of capital is 11%, which of these two projects would you accept (A, B, or both)? b. Suppose that you can choose only one of these two projects. Which would you choose? The discount rate is stil 11%. c. Which one would you choose if the cost of capital is 16%? d. What is the payback period of each project? e. Is the project with the shortest payback period also the one with the highest NPV? f. What are the internal rates of return on the two projects? g. Does the IRR rule in this case give the same answer as NPV? h-1.1f the opportunity cost of capital is 11%, what is the profitability index for each project? h-2. Is the project with the highest profitability index also the one with the highest NPV? h-3. Which measure should you use to choose between the projects? Complete this question by entering your answers in the tabs below. Rega Reg B Reg C Reg D ReqE Reg F Reg G ReqH1 Reg H 2 Roq H3 What are the internal rates of return on the two projects? (Enter your answers as a percent rounded to the nearest whole number.) Project A % IRR Project B % Consider the following two projects: Cash flows Project A Projects ce -$280 -$280 41 120 148 2 120 148 63 120 148 C4 120 a. If the opportunity cost of capital is 11%, which of these two projects would you accept (A, B, or both)? b. Suppose that you can choose only one of these two projects. Which would you choose? The discount rate is still 11%. c. Which one would you choose if the cost of capital is 16%? d. What is the payback period of each project? e. Is the project with the shortest payback period also the one with the highest NPV? f. What are the internal rates of return on the two projects? g. Does the IRR rule in this case give the same answer as NPV? h-1. If the opportunity cost of capital is 11%, what is the profitability index for each project? h-2. Is the project with the highest profitability index also the one with the highest NPV? h-3. Which measure should you use to choose between the projects? Complete this question by entering your answers in the tabs below. ReqA ReqB Reqc ReqD Req E Reg F Reg G ReqH1 Reg H2 Reg H 3 Does the IRR rule in this case give the same answer as NPV? If cost of capital is less than Cross-over rate If cost of capital is equal to or greater than Cross over rate Consider the following two projects Cash flows co 1 62 G3 CA Project Project B - 5280 -$280 120 148 120 148 120 148 120 a. If the opportunity cost of capital is 11%, which of these two projects would you accept (A, B, or both)? b. Suppose that you can choose only one of these two projects. Which would you choose? The discount rate is still 11% c. Which one would you choose if the cost of capital is 16%? d. What is the payback period of each project? e. Is the project with the shortest payback period also the one with the highest NPV? 1. What are the internal rates of return on the two projects? 9. Does the IRR rule in this case give the same answer as NPV? h-1. If the opportunity cost of capital is 11%, what is the profitability index for each project? h-2. Is the project with the highest profitability index also the one with the highest NPV? h-3. Which measure should you use to choose between the projects? Complete this question by entering your answers in the tabs below. ReqA ReqB Reqc ReqD ReqE Reg F Reg G Reg H1 Req H2 ReqH3 If the opportunity cost of capital is 11%, what is the profitability index for each project? (Round your answers to 2 decimal places.) Project A Project B Profitability Index Consider the following two projects: Cash flows Uvo Project A -$280 120 120 120 120 Project B -$280 148 148 148 o. If the opportunity cost of capital is 11%, which of these two projects would you accept (A, B, or both)? b. Suppose that you can choose only one of these two projects. Which would you choose? The discount rate is still 11% c. Which one would you choose if the cost of capital is 16%? d. What is the payback period of each project? e. Is the project with the shortest payback period also the one with the highest NPV? f. What are the internal rates of return on the two projects? g. Does the IRR rule in this case give the same answer as NPV? h-1. If the opportunity cost of capital is 11%, what is the profitability index for each project? h-2. Is the project with the highest profitability index also the one with the highest NPV? h-3. Which measure should you use to choose between the projects? Complete this question by entering your answers in the tabs below. Reg A ReqB Reqc Reg D ReqE ReqF Req G Reg H1 Rea Req H3 Is the project with the highest profitability index also the one with the highest NPV? Highest profitability index would also mean highest NPV Cash flows Co Project B -$280 Project A -$280 120 120 2 148 148 120 120 .. If the opportunity cost of capital is 11%, which of these two projects would you accept (A, B, or both)? b. Suppose that you can choose only one of these two projects. Which would you choose? The discount rate is still 11% c. Which one would you choose if the cost of capital is 16%? d. What is the payback period of each project? e. Is the project with the shortest payback period also the one with the highest NPV? - What are the internal rates of return on the two projects? 9. Does the IRR rule in this case give the same answer as NPV? h-1. If the opportunity cost of capital is 11%, what is the profitability index for each project? h-2. is the project with the highest profitability index also the one with the highest NPV? h-3. Which measure should you use to choose between the projects? Complete this question by entering your answers in the tabs below. Rega Rege Rega Reg D ReqE ReqF Reg G Reg H1 Req H2 ReqH3 Which measure should you use to choose between the projects? ws of capital is rationed If capital is not rationed