2. A company is choosing between two different independent service contracts. One contract will cost $10,000 and the second $15,000. Both will save the company money on different general repairs in future years. The following are the cash flows for the two contracts: Year 1 2 3 4 Contract 1 -$10,000 4,500 3,000 5,000 2,000 Contract 2 -$15,000 6,500 5,000 7,000 2,000 Assume the company's WACC is 6.5 percent. Calculate the NPV, the IRR, and the Profitability Index (the PI will require a bit of thinking) for both contracts. Based on your calculations, which service contract, if any, should the company purchase-Contract 1, Contract 2, both, neither? Service ServiceCard This Contract is made and entered into red into by and between the customer hereinafter referred to as the "CUSTOMER below named tem, here as "SUPPLIER *** Example of Solving Uneven Cash Flows on Calculator Year 1 2 3 4 Contract 1 -$1,000 250 350 450 300 Discount Rate = 2% Calculator Syntax: NPV: (2,-1000,{250,350,450,300}) = 282.705791 IRR: (-1000,{250,350,450,300}) = 12.59585767