Question: Here are the estimated cash flows for two projects: year 0 1 2 3 4 5 Project Gobi -1000 200 240 560 400 600

Here are the estimated cash flows for two projects: year 0 1 2 3 4 5 Project Gobi -1000 200 240 560 400 600 Project Qattara -1100 200 200 680 20 1200 The appropriate discount rate for both projects is 6% per year. For each project, calculate the payback period, the discounted payback period, the internal rate of return, and the profitability index. b. Which project(s) should you choose? c. If Gobi and Qattara are mutually exclusive, which project should you choose?

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