Question: Consider these two projects: Project C 0 C 1 C 2 C 3 A $18 +$10 +$10 +$10 B $50 +$25 +$25 +$25 . Find

Consider these two projects:

Project C0 C1 C2 C3
A $18 +$10 +$10 +$10
B $50 +$25 +$25 +$25

. Find the NPV of each project. (Do not round intermediate calculations. Round your answers to the nearest cent.)

Which project has the higher NPV if the discount rate is 10%?

Find the profitability index of each project. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Which project has the higher profitability index?

Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects?

Which project is most attractive to a firm that is limited in the funds it can raise?

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