9. XYZ company has an option to invest in either project A or project B. Both projects will generate the same amount of income in four years. (1) Calculate the Present Value of cash flows of the two projects (10 points), (2) Calculate the Net Present Value of these two projects and identify which project XYZ company should choose based on your calculation, (10 points) *Net Present Value means the sum of the present value of the cash flow of the project. (3) which project the company should choose and what is the IRR of the chosen project? (Bonus 10 points) Project A: Initial Investment $890,000 End of Year 12% Rate PV of CF- 1 2 Net Income 300000 300000 300000 300000 1200000 Cash Flow 250000 350000 350000 250000 1200000 3 4 Total PV NPV of Project A: Project B: Initial Investment $865,000 End of Year 12% Rate PV of CF Net Income 300000 300000 300000 300000 1200000 Cash Flow 50000 100000 350000 700000 1200000 Total PV NPV of Project B