Question: please answer both asap Suppose you are given the following two projects A and B with the cash flows below, if the cost of capital
Suppose you are given the following two projects A and B with the cash flows below, if the cost of capital is 11%, what is the Profitability Index (PI) of projects A and B? Year Project A Project B 0 -8000 -10000 1 2500 2500 2 2500 3000 3 3500 2500 3500 5000 1.09 and 0.94 1.12 and 0.96 1.20 and 1.03 O 1.14 and 0.98 O 1.07 and 0.91 QUESTION 9 A company is considering two equally risky, mutually exclusive projects A and B. The cost of capital is 9% The CEO wants to use the IRR criterion, while the CFO favors the NPV method. If the CEO's preferred criterion is used, how much value will the firm lose as a result of this decision? QUESTION 9 6.51 po A company is considering two equally risky, mutually exclusive projects A and B The cost of capital is 9% The CEO wants to use the IRR criterion, while the CFO favors the NPV method. If the CEO's preferred criterion is used, how much value will the firm lose as a result of this decision? Year Project A -$4,000 0 1 2,000 2.100 2,200 2,300 Project B -$2,000 1,000 1,100 1.200 1,300 3 4 1102.45 1169.87 1037.35 O 1312.13 O 1239.72
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