4 You are the CEO of a large company and have to evaluate three mutually exclusive projects, described below. Your CFO has estimated that the company's cost of capital is 7%. Project 1: You invest $80 million today, and receive $40 million every year for 8 years, starting next year. Project 2: You invest $75 million today, and receive $20 million every year forever, starting next year. Project 3: You invest $50 million today, and receive $500 million in 20 years. a. Using the NPV-rule, what project should you choose? Answer with the project number (i.e. 1, 2, or 3) Project b. What is the Net Present Value (NPV) of the chosen project? Answer in millions with two decimals (i.e. 110.23, not 110 230 000). $2 Maximum marks: 10