2. A and B are mutually exclusive projects (i.e., the firm can choose only one of the projects). The required rate of return for both projects is 10 percent. The projects have the following cash flows: YEAR PROJECT A -$32,000 4,800 8,000 12,000 24,800 PROJECT B -S32,000 17,600 12,000 8,000 3,600 4 a. Do you think there is potentially a conflict between the IRR and NPV about whether A or B is the better project, what would be the mechanical rcason for this conflict? What would be the real (economic reason) behind a possible conflict? b. Find the Net Present values of the two projects. Which of the two projects should the firm take? Why? c. Find the Modified internal rate of returns of the two projects. Which of the two projects should the firm take? Why? d. In your opinion, which is the better project? Why? 2. A and B are mutually exclusive projects (i.e., the firm can choose only one of the projects). The required rate of return for both projects is 10 percent. The projects have the following cash flows: YEAR PROJECT A -$32,000 4,800 8,000 12,000 24,800 PROJECT B -S32,000 17,600 12,000 8,000 3,600 4 a. Do you think there is potentially a conflict between the IRR and NPV about whether A or B is the better project, what would be the mechanical rcason for this conflict? What would be the real (economic reason) behind a possible conflict? b. Find the Net Present values of the two projects. Which of the two projects should the firm take? Why? c. Find the Modified internal rate of returns of the two projects. Which of the two projects should the firm take? Why? d. In your opinion, which is the better project? Why