2. The company you work for has presented you three capital projects. Your company's discount rate is 12%. Using the project cash flows below, answer the following questions: Proiect 3 $65,000 Initial Investment Year 2 Proiect Proiect 2 $125,000 $100,000 Net Cash Flows $35,000 $45,000 (S5,000) $62,500 $50,000 S36,000 ($2,500) S43,500 $125,000 $45,000 (S3,500) ($112,500) $32,500 ($5,200) $1,000 S15,000 $25,000 $35.000 $35,000 5 (a) Calculate the NPV for each project, provide a recommendation for which project should be invested in, and clearly state why your project is best. 10 pts (b) Your boss is insistent on you calculating a rate of retum for each project. So, (1) calculate a modified internal rate of retum (MIRR) for each project, (2) state which project is preferred, and (3) state why you have to calculate a MIRR and not an IRR. 10 points