Hello, I only need the answers for b-1 where it's in red. I tried those...
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Hello, I only need the answers for b-1 where it's in red. I tried those answers and they are not correct..
Consider projects A and B with the following cash flows: A B CO -$34 - 59 C1 +$18 + 34 C2 +$18 + 34 C3 +$18 + 34 a-1. What is the NPV of each project if the discount rate is 10%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) a-2. Which project has the higher NPV? b-1. What is the profitability index of each project? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b-2. Which project has the higher profitability index? c. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? d. Which project is most attractive to a firm that is limited in the funds it can raise? Answer is complete but not entirely correct. Project A Project B NPV of each project if the discount rate is 10% $ 10.76 $ 25.55 Which project has the higher NPV? Project B a- 1. a- 2. b- 1. b- 2. Profitability index of each project $ 1.32 X $ 1.43 x Project B C. Which project has the higher profitability index? 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? Both >>> d. Project B
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