##### You have been asked to analyze two proposed capital investments. The information related to each project is listed below.Project AProject B Initial Cost$150,000$250,000 Cash Flows Year 1$50,000$50,000 Year 2$50,000$60,000 Year 3$50,000$72,000 Year 4$50,000$86,400 Year 5$50,000$103,680 Salvage Value$30,000$15,000 Answer the following questions: Calculate the NPV of each project. Assume a corporate cost of capital rate of 6%. Calculate the IRR of each project. Calculate the MIRR of each project. Assume a reinvestment rate of 8%. Calculate the Profitability Index for each project.

You have been asked to analyze two proposed capital investments. The information related to each project is listed below.Project AProject B

Initial Cost$150,000$250,000

Cash Flows

Year 1$50,000$50,000

Year 2$50,000$60,000

Year 3$50,000$72,000

Year 4$50,000$86,400

Year 5$50,000$103,680

Salvage Value$30,000$15,000

Answer the following questions: Calculate the NPV of each project. Assume a corporate cost of capital rate of 6%.

Calculate the IRR of each project.

Calculate the MIRR of each project. Assume a reinvestment rate of 8%.

Calculate the Profitability Index for each project.

Which project would your recommend? Explain your answer.