Question: Question 3 8 pts SoBee is considering two mutually exclusive capital budgeting projects, Project A and Project B, which have a cost of capital of

 Question 3 8 pts SoBee is considering two mutually exclusive capital

budgeting projects, Project A and Project B, which have a cost of

Question 3 8 pts SoBee is considering two mutually exclusive capital budgeting projects, Project A and Project B, which have a cost of capital of 12%. The expected future cash flows are given below. Year 0 1 2 3 4 5 CF Project A -130 60 50 40 30 20 CF Project B-130 30 35 35 50 75 If you are choosing on the basis of PI (profitability index), what is the Pl of the better project? (Express your answer as a number accurate to four decimal places.) Question 4 8 pts A firm has the opportunity to undertake an investment with the following cash flows, given in thousands of dollars: CFO CF1 CF2 CF3C F4 CF5 -381.6929126 126 126 126 184.739 The firm's cost of capital is 12%. What is the project's modified internal rate of return? (Express your answer in decimal format accurate to four decimal places)

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