Which project is most attractive to a firm

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Consider projects A and B with the following cash flows: C0 C1 C2 C3   A − $ 33 + $ 17 + $ 17 + $ 17   B − 58 + 33 + 33 + 33 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.)   Project NPV A $ B $ a-2. Which project has the higher NPV? Project B Project A b-1. What is the profitability index of each project? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Project Profitability index    A       B       b-2. Which project has the higher profitability index? Project B Project A c-1. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? Project B Project A c-2. Which project is most attractive to a firm that is limited in the funds it can raise? Project B Project A Both

Reference no: EM131513555

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