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.