A company is evaluating has identified the following two mutually exclusive projects: Project 2 12% Project 1 Required Return 12% Project Life (years) Annual cash flows expected: Cost of the project -185,000 52,500 55,000 78,500 85,450 -195,000 82,500 75,000 69,000 61,000 Show the necessary calculations: a. What is the payback period of these projects? b. What is the NPV for each of these projects? Which project will the company choose if it applies the NPV decision rule? c. What is the IRR for each of these projects? Using the IRR decision rule, which project should the company accept? d. When and why do you think NPV and IRR will give contrary decision in project selection