Problem $8-25$ Profitability Index versus NPV $($LO$3)$

Consider projects A and B with the following cash flows:

C$0$ C$1$ C$2$ C$3$

A $$$ $44+$$ $28+$$ $28+$$ $28$

B $69+38+38+38$

a$-1.$What is the NPV of each project if the discount rate is $12\%?$

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.

a$-2.$ Which project has the higher NPV$?$

b$-1.$ What is the profitability index of each project?

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.

a$-2.$ Which project has the higher NPV$?$

b$-2.$ Which project has the higher profitability index?

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

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