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XYZ Inc. is reviewing two investment opportunities with the following projected cash flows:YearProject CProject D0-$6,000,000-$5,500,0001$2,000,000$1,800,0002$2,500,000$2,200,0003$3,000,000$2,700,0004$2,500,000$3,000,000a....

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Accounting

XYZ Inc. is reviewing two investment opportunities with the following projected cash flows:

Year

Project C

Project D

0

-$6,000,000

-$5,500,000

1

$2,000,000

$1,800,000

2

$2,500,000

$2,200,000

3

$3,000,000

$2,700,000

4

$2,500,000

$3,000,000

a. Calculate the NPV of each project using a discount rate of 10%. b. Find the IRR for both projects. c. Determine the profitability index. d. Which project should the company choose based on your analysis? Explain why.

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