5. Your factory has been offered three contracts, but you can only accept one due to physical limitations (expansion is not feasible). Each contract lasts for four years (during which time, no other projects can be taken), but there is an initial cost to retool the factory's m achines. Assume the cost of capital is 9% and all cash flows occur at the end of each period. The incremental cash flows for the contracts are provided in the table below. Contract Cash Flows Today1 year $10 million $2 million $2 million $2 million13 million Contract Acrylonitrile (A) Butylacetone (B) $10 thousand $3 thousand $3 thousand $3 thousand S 13 thousand Chloroacetic Acid (C) -$10 million $12 million 0 2 years 3 years 4 years $0 $0 (a) Ranked by payback period, which contract is most attractive? (b) Ranked by NPV, which contract is most attractive? (c) Ranked by IRR, which contract is most attractive? (d) Which project should be undertaken? Which rule (payback, NPV, or IRR) SHOULD be used in deciding which contract to accept? What are some issues with the other rules? (e) If the contracts were NOT mutually exclusive (you have lots of space in your factory, so you can take one contract, two contracts, or all three), which contracts should be accepted