3: Your firm is considering two investment projects Project A requires an upfront expenditure of $60 million. Project B requires an upfront expenditure of $65 million You assume also that the investments will produce the following after tax cash flows (in millions of dollars). Year 1234 Project A 16 Project B 30 2 20 25 3 4 24 18 16 11 a/ Calculating NPV, if the two projects are mutually exclusive and the cost of capital is 4%, which project should be adopted? b/ Construct NPV profiles for projects A and B. c/ According to b/, if the cost of capital is 7%, which project should be selected if they are mutually exclusive? No calculation. Show on the graph d/ What is each project's payback period? e/ In what sense the capital structure influences the WACC? f/ In a downturn of the economy, the NPV of these projects will have the tendency to increase or decrease? Why