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

Consider projects A and $B$ with the following cash flows:

a$-1.$ What is the NPV of each project if the discount rate is $14\%?($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? $($Do not round intermediate calculations. Round your answers to $2$ decimal

places.$)$

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?