Question: Question 4 ( 8 marks) Consider projects A and B with the following cash flows: a) What is the NPV of each project if the

 Question 4 ( 8 marks) Consider projects A and B with

Question 4 ( 8 marks) Consider projects A and B with the following cash flows: a) What is the NPV of each project if the discount rate is 12% ? b) Which project has the higher NPV? c) Which project has the higher profitability index? d) Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? e) Which project is most attractive to a firm that is limited in the funds it can raise

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