1. Ben Jovi is evaluating two investment opportunities Project Love and Project Prayer. Ben has a rate of return of 15%. The cash flows for each investment are presented in the table below:

	Expected cash inflow
Year	Project Love	Project Prayer
0	($4,500,000)	($1,750,000)
1	$2,100,000	$900,000
2	$1,700,000	$700,000
3	$1,400,000	$500,000
4	$1,200,000	$400,000

1. Which projects (if any) are acceptable if Ben uses NPV to make his capital budgeting decision? Include calculation for NPV and EXPLAIN.

2. Which project (if any) should Ben choose if he uses NPV to make his decision?

3. Which projects (if any) are acceptable if Ben uses IRR to make his capital budgeting decision? Include calculation for IRR and EXPLAIN.
4. Which project (if any) should Ben choose if he uses IRR to make his capital budgeting decision?

i. In the case that your rankings above for IRR and NPV do not agree, which project (if any) should Ben choose and why? Note that you do not have to calculate crossover rate for this question.