7. Suppose the State government is deciding which of two education projects to fund: Project A and Project B. Each option will provide education for 100 students every year it is in operation, valued at $5 million per year. Project A will cost $20 million to set up, will cost $1 million each year to run and will operate for 20 years. Project B will cost $5 million to set up, $2 million each year to run, and will operate for 15 years. a) Use a 10% discount rate to calculate the Net Present Value of each of Project A and B to decide which Project the State government should fund. (5 marks) b) Now use a 5% discount rate to decide which project the government should choose. (2 marks) c) Describe some characteristics (other than a different discount rate) that might lead to the government always choosing to fund education Project A or B. (3 marks) Hint: you might find it useful to create a table in a spreadsheet program (eg Excel or Numbers) so that you can use the formula features to make the calculations easier