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2. Hogsmeade village has two mutually exclusive projects. It has no other investment opportunity. Hogsmeade's required rate of return is 10%. Which project should it

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2. Hogsmeade village has two mutually exclusive projects. It has no other investment opportunity. Hogsmeade's required rate of return is 10%. Which project should it choose if Hogsmeade wants to make atleast a profit of $3,500 as in today's value? Explain why? Which technique have you applied to make decision and why? The estimated cashflows (in $) from the projects are given below: (Round off your values. No need to put digits after decimal) Marks: 15 Year 0 1 2 3 Zonko's Joke Shop (25.000) 7,500 7,500 7,500 7.500 7.500 Honeydukes Sweetshop (23,000) 7.000 7,000 7.000 7,000 7.000

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