Consider the following two projects: Cash flows ce Project A Project B -$220 -$220 98 114 90 114 90 114 90 C2 C3 C4 a. If the opportunity cost of capital is 8%, 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 8%. c. Which one would you choose if the cost of capital is 139? 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 8%, 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. Req A Req B Req Reg D ReqE ReqF Reg G Re4 H 1 Reg H2 Reg 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 Project B IRR % % Complete this question by entering your answers in the tabs below. Rey A Req Reqc Reg D ReqE Reg F Req G Reg H 1 Reg H2 Req H3 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 Complete this question by entering your answers in the tabs below. Req A Reg B Reg C Rey D Reg E Reg F Rey G Red H 1 Reg H2 Req H3 If the opportunity cost of capital is 8%, what is the profitability index for each project? (Round your answers to 2 decimal places Project A Project B Profitability Index Complete this question by entering your answers in the tabs below. Req A Red B Reg C Reg D Reg E ReqF Rey G Red H1 Reg H 2 Reg H 3 Is the project with the highest profitability index also the one with the highest NPV? Highest profitability index would also mean highest NPV Complete this question by entering your answers in the tabs below. Req A Reg B Reg C Reg D Rey E Reg F Req G Red H1 Reg H 2 Req H3 Which measure should you use to choose between the projects? If capital is rationed If capital is not rationed