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5) The following two projects are related to the Shah Corporation. The board of directors is trying to decide which of the following mutually explosive

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5) The following two projects are related to the Shah Corporation. The board of directors is trying to decide which of the following mutually explosive projects should be accepted. Project Year 0 CF -188,000 1 2 18,500 19,000 3 29,500 31,000 5 6 7 8 9 35,000 42,000 36,000 55,000 60,000 10 59,000 Project II Year 0 1 2 3 CF (188,000) 19,000 28,400 39,400 4 5 6 7 8 9 10 25,000 32,000 31,000 39,000 52,000 59.000 62,000 Based on the current COVID-19 situation, the firm is willing to accept any project that would produce a minimum rate of return of 4.89%. Which project do you recommend? why? Detailed calculations must be provided to receive full marks. (6 Points)

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