4. Killer Hogs, Inc. produces instructional barbecue videos and markets a complete line of barbecue sauces and rubs. The management of Killer Hogs, Inc. is currently considering the following capital projects: Project New film studios Cameras and equipment Land improvement Seasoning #1 Seasoning #2 Seasoning #3 Corporate aircraft Cost $20,000,000 $3,200,000 $5,000,000 $17,800,000 $11,400,000 $8,000,000 $2,400,000 Annual Cash Flows $3,100,000 $800,000 $1,180,000 $4,970,000 $3,920,000 $2,300,000 $770,000 Number of Years 15 8 10 5 4 7 5 Assume that all projects have no salvage value and that the firm uses a discount rate of 10%. Management has decided that only $25,000,000 can be spent in the current year for capital projects. a) Determine the following for each of the seven possible projects: i. Payback period ii. Net present value iii. IRR b) Rank each project according to each method in a) above. c) How would you spend the money? What is the NPV of the selected investments