Question: Please type a numerical solution to the problems below: Project B has the following cash flows: (remember the year zero number is negative) Year 0

 Please type a numerical solution to the problems below: Project B

Please type a numerical solution to the problems below: Project B has the following cash flows: (remember the year zero number is negative) Year 0 Year 1 Year 2 Year 3 Year 4 Cash flows $1,000,000 $600,000 $400,000 $300,000 $200,000 1. Using a 9% cost of capital, what is the net present value of this project? Should this project be accepted? 2. What is the profitability index for this project? 3. What is the internal rate of return for this project? 4. What is the payback period for this project? 5. What is the present value payback period for this project? Project E has the following cash flows: (remember the year zero number is negative) Year 0 Year Year 2 Year 3 Year 4 Cash flows $1,000,000 $300,000 $400,000 $500,000 $500,000 6. Using a 9% cost of capital, what is the net present value of this project? Assume that Project E is mutually exclusive to Project B above. Using net present value to make the decision -- should this project be accepted over Project B? 7. Using a 9% cost of capital, what is the profitability index for this project? Assume that Project E is mutually exclusive to Project B above. Using the profitability decision model to make the decision -- should this project be accepted over Project B? 8. Using a 9% cost of capital, what is the internal rate of return for this project? Assume that Project E is mutually exclusive to Project B above. Using the internal rate of return decision model to make the decision -- should this project be accepted over Project B? 9. Using a 9% cost of capital, what is the payback period for this project? Assume that Project E is mutually exclusive to Project B above. Using the payback decision model to make the decision -- should this project be accepted over Project B? 10. Using a 9% cost of capital, what is the present value payback period for this project? Assume that Project E is mutually exclusive to Project B above. Using the present value payback decision model to make the decision -- should this project be accepted over Project B? 11. Which project should be selected

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