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Problem #3: Capital Budgeting Criteria: Note the following information on two mutually exclusive projects under...

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Problem #3: Capital Budgeting Criteria: Note the following information on two mutually exclusive projects under con sideration by Monroe Food Markets, Inc. Annual Cash Flows Year A $- 30,000 10,000 10,000 10,000 10,000 10,000 8-60,000 20,000 20,000 20,000 20,000 20,000 Monroe requires a 14 percent rate of return on projects of this nature. a. Compute the NPV of both projects. b. Compute the internal rate of return on both projects. c. Compute the profitability index of both projects. d. Compute the payback period on both projects. e. Which of the two projects, if either, should Monroe accept? Why

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