1) NPV and IRR (20 mins, 20 points) Here are the cash flows for three mutually exclusive projects starting from t=0 to t=4: Project X *Put your name and signature at the top of the page. Y Z Co -30,000 -30,000 -30,000 C 10,000 0 34,000 C 10,000 0 0 C3 10,000 35,000 0 C4 2,000 0 0 a. Which project would you choose using the NPV method if the discount rate is 5%? b. Which project would you choose using the IRR method? (For Project X, explain in detail how you would calculate its IRR but do not solve for it. The IRR for Project X is 3.1%) c. Which of the two methods would you rely on to make your final decision if they result in a differing ordering of the projects? For example, if NPV says Project X is superior and IRR says Project Y is superior, which one would you go with? Why?