GemMining has two projects. Projects C0 C1...

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Finance

GemMining has two projects.

Projects

C0

C1

C2

C3

A

-36

20

20

20

B

-50

25

25

25

  1. Which project has the higher NPV if the discount rate is 10%?
  2. Which has the higher profitability index?
  3. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? Which project is most attractive to a firm that is limited in the funds it can raise.

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