4. (4 points) You have $50,000 to invest and are deciding between two different projects, as described below. Year Investment 1 Investment 2 0 S(50,000) $(50,000) 1 $ 12,000 $ 10,000 2 $ 18,000 S 16,000 3 $ 25,000 $ 28,000 4 $ 15,000 $ 15,000 $ $ 5,000 $ 8,000 If your required return is 15%, which would you choose? What is the difference between the two NPVs? 5. (2 points) How much would year 4's cash flow for Investment I have to change so that the NPVs of the two are exactly the same? 6. (4 points) An investment has two Internal Rates of Return, 14% and 28%. The investment has a positive NPV when the required retum is 20%. Given that, is the NPV of the investment positive or negative when the required return is: 12% b. 16% e. 26% d. 30% 7. (3 points) Investment B's IRR is 18%. Investment A's IRR is 25%. The NPV of A and B is the same when the required return is 14%. Which investment do you choose when the required return is: a. 22% b. 26% c. 12%