QUESTION F or Ref F

Cash flows C C2 C3 C4 Project A Project B -$130 -$130 65 65 52 65 52 NNN a. If the opportunity cost of capital is 12%, which of these two projects would you accept (A, B, or both)? b. Suppose that you can choose only one of these two projects. Which would you choose? The discount rate is still 12%. c. Which one would you choose if the cost of capital is 17%? d. What is the payback period of each project? e. Is the project with the shortest payback period also the one with the highest NPV? f. What are the internal rates of return on the two projects? g. Does the IRR rule in this case give the same answer as NPV? h-1. If the opportunity cost of capital is 12%, what is the profitability index for each project? h-2. Is the project with the highest profitability index also the one with the highest NPV? h-3. Which measure should you use to choose between the projects? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg A Req B Reqc Reg D Reg E Reg F Req G Reg H1 Req H2 Reg H3 What are the internal rates of return on the two projects? (Enter your answers as a percent rounded to the nearest whole number.) Project A 17 IRR Project B 12 % %