Question: Page 3. (13 points) Simulations Inc. is evaluating two projects A and B with the following expected cash flows: Net After-Tax Cash flows $ Year

Page 3. (13 points) Simulations Inc. is evaluating two projects A and B with the following expected cash flows: Net After-Tax Cash flows $ Year (40,050) 13350 13350 13350 13350 13350 (39,000) 6000 9000 12000 19500 25500 2 Projects A and B have the same risk. The cost of capital is 13%. I. (4 points) Compute for project A the following: NPV: IRR; MIRR PI II. (4 points) Compute for project B the following: NPV: IRR ; MIRR ; PI III. (2 points)If there is no capital rationing and A and B are independent, which project (s) should be chosen according to each of the NPV: IRR; MIRR; and PI methods? Why? IV. (2 points) If there is no capital rationing and A and B are mutually exclusive, which project should be chosen according to each of the NPV: IRR: MIRR: and PI methods? Why? V. (1 points) If management goal is to maximize value, what should be the correct choice in part IV above? Why

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