Question: Show Work ... No work no points. Roadrunner Corporation has the following mutually exclusive projects available. Both projects require an initial investment of $1,350,000. The
Show Work ... No work no points. Roadrunner Corporation has the following mutually exclusive projects available. Both projects require an initial investment of $1,350,000. The two projects are equally risky, and the required rate of return is 13%. The estimated after tax cash flows for the projects are shown below: Year 1 2 Project A $560,000.00 $490,000.00 $420,000.00 $245,000.00 Project B $350,000.00 $420,000.00 $420,000.00 $420,000.00 $420,000.00 3 4 5 $140,000.00 Please answer with two digits to the right of the decimal. For example, 20.20% or 2.02 Times. 1. Calculate the Net Present Values (NPVs) of each project. 2. Calculate the Internal Rates of Returns (IRRs) of each project. Please express your answer in percent, with two digits to the right of the decimal. 3. Calculate the Profitability Indexes (Pls) of each project. Please express your answer with two digits to the right of the decimal. 4. Which project(s) if any, would you select? Why
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