You have been asked to analyze two proposed capital investments. The information

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.