Question: Question # 4: Your division is considering two investment projects, each of which requires an upfront expenditure of $15 million. You estimate that the investments

 Question # 4: Your division is considering two investment projects, each

Question # 4: Your division is considering two investment projects, each of which requires an upfront expenditure of $15 million. You estimate that the investments will produce the following net cash flows: Year Project A Project B 1 5,000,000 20,000,000 2 10,000,000 10,000,000 3 20,000,000 6,000,000 a- What are the two projects' Net Present Values, assuming the cost of capital is 5%? b- What are the two projects' Profitability Index, assuming the cost of capital is 5%? C- Which project or projects should be accepted if they are independent? d- Which project should be accepted if they are mutually exclusive

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