3.5 The Dandy Candy Company is considering two mutually exclusive projects. They are the only projects available. The risk-free rate is 5%. The cash flows from the projects are known with certainty and are given below: Year Project 1 Project 2 10,000 4.000 4.000 4.000 4,000 -1.000 2,700 2.700 a) Which project has the higher net present value? b) If the firm has no capital constraints, which project would you select? e) If the firm has a capital constraint of $12.000, which project would you select? Why