Visionary Inc. is examining two projects, A and B. Project A has a lower inltial investment than project B and is expected to generate a steady stream of cash flows over its economic life, B is expected to generate lower cash flows in earlier years and higher cash flows in later years relative to A. Detalls regarding the initial investment projected at time and subsequent cash flows for the two projects are provided below Year @ 1 2 Cash Flows, 5 Project A Project B -10,000 -15, eee 6,000 3,eee 6,eee 5, eee 6,000 7. eee 6.ee 8,000 Assume that the cost of capital for both projects is 10% c-1. Calculate the profitability Index for each project. (Do not round intermediate calculations. Round your answers to 4 decimal places.) Profitability Index Project A Project B c-2. Which project would you select using this method? Based on the profitability index approach, is preferred as it has the higher NPV d-1. Calculate the IRR for each project. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places.) IRR Project A Project B % 96 d-2. Which project would you choose using the IRR rule? Based on the IRR approach is preferred as it has the higher NPV. d-3. Try to calculate the IRR for project B using interpolation and see whether you are able get an answer close to the one you would get using a financial calculator or a software package (Do not round intermediate calculations. Round your answer to 2 decimal places.) IRR e. How would you distinguish between Independent and mutually exclusive projects? projects would be evaluated for acceptance de rejection on a "standalone" basis. projects would be selected on another or basis and only those contributing most toward shareholder wealth would be selected f. Are you able to reach the same decision by applying the different decision criteria? If not, which criterion would you rely on? If we get conflicting decisions using different methods then the as it is generally considered to be the most robust. method should be used e. How would you distinguish between independent and mutually exclusive projects? projects would be evaluated for acceptance or rejection on a "standalone" Independent Mutually exclusive rojects would be selected on an "either/or" basis and only those contribut h would be selected