A furniture company is considering investing in several projects to expand its business. The projects under consideration are (1) Lights and/or (2) Shelving. Both projects require an initial investment of $3,000. The cash flows and risk of each project are outlined below. LIGHTING: is expected to produce $500 a year for 20 years. The beta is 1.5 for this project SHELVING: is expected to produce $1,000 a year for 10 years. The beta is 0.8 for this project Cash flows start one year from today. Further, the market risk premium is 6%, and the T-bill rate is 3%. Using this information, answer the following questions. 1. According to CAPM, what is the appropriate discount rate for the LIGHTING project? 2. What is the NPV of the LIGHTING project? 3. According to CAPM, what is the appropriate discount rate for the SHELVING project? 4. What is the NPV of the SHELVING project? 5. Which project(s) would you invest in? LIGHTING SHELVING LIGHTING AND SHELVING Neither!