Problem: I need help in understanding the cost of capital and how to figure it. Calculate the values for each project using the time value table- the cost of capital is 12%
1. NPV
2. IRR
3. Profitability index
4. Payback Period
Year Project A Project B
0 $-30,000 $-60,000
1 $ 10,000 $20,000
2 $ 10,000 $20,000
3 $ 10,000 $20,000
4 $ 10,000 $20,000
5 $ 10,000 $20,000