2. Discounting and Net Present Value. Assume you are the CFO of a manufacturing company and are deciding to choose between three different projects which have different cash flows and different cost of capital. CFO Project A B Cost of Capital 10% 5% 15% - 10 -10 -5 CF1 +30 +5 +20 CF2 +5 +15 +10 CF3 +5 +10 +5 a. What is the present value of all individual cash flows? b. What is the net present value of each project? How do you interpret these numbers? C. Assume that you have enough capital to invest in two projects. Which two projects would you choose? Why? d. Assume your CEO challenges your suggestion without conducting any analysis. The only number the CEO is basing their argument is by the cost of capital? Would this approach be right? Why or why not? How would you defend your choice