Consider the following two projects:

Cash flows	Project A			Project B
C0	$	230		$	230
C1		95			121
C2		95			121
C3		95			121
C4		95

1. What is the payback period of each project?
2. Is the project with the shortest payback period also the one with the highest NPV? Answer : Yes or No?
3. What are the internal rates of return on the two projects? in %
4. Does the IRR rule in this case give the same answer as NPV if the cost capital is less than cross-over rate? Yes or No
5. Does the IRR rule in this case give the same answer as NPV if the cost of capital is equal to or greater than cross-over rate? Yes or No
6. If the opportunity cost of capital is 9%, what is the profitability index for each project?
7. Is the project with the highest profitability index also the one with the highest NPV? Yes or NO
8. Which measure should you use to choose between the projects if capital is rationed? NPV or Profitability Index
9. Which measure should you use to choose between the projects if capital is rationed? NPV or Profitability Index

Please answer everything, it is short answers. Thank you!