26. You are considering the following two projects and can only take one. Your cost of capital is 11%. 0 1 2 3 4 A -100 25 30 40 50 B -100 50 40 30 20 a. What is the NPV of each project at your cost of capital? b. What is the IRR of each project? c. At what cost of capital are you indifferent between the two projects? d. What should you do? 32. Orchid Biotech Company is evaluating several development projects for experimental drugs. Although the cash flows are difficult to forecast, the company has come up with the following estimates of the initial capital requirements and NPVs for the projects. Given a wide variety of staffing needs, the company has also estimated the number of research scientists required for each development project (all cost values are given in millions of dollars). 246 Part 3 Valuation and the Firm Project Number 1 II III IV V Initial Capital $10 15 15 20 30 Number of Research Scientists 2 3 4 3 12 NPV $10.1 19.0 22.0 25.0 60.2 a. Suppose that Orchid has a total capital budget of $60 million. How should it pri- oritize these projects