Boca Raton Stake House is now considering expanding the business. Bob Correll, the owner and CEO, of the company is facing a difficulty which projects he should invest. The projects are:

Project

CF$0$

CF$1$

CF$2$

CF$3$

CF$4$

CF$5$

WACC

Frozen Yogurt

$($$$1,000)$

$$180$

$$200$

$$220$

$$230$

$$250$

$8\mathrm{.}50\%$

Jewelry

$($$$5,500)$

$$1,200$

$$1,400$

$$1,600$

$$1,800$

$$2,000$

$12\mathrm{.}50\%$

Soft Drink

$($$$3,000)$

$$1,000$

$$900$

$$700$

$$600$

$$500$

$10\%$

Farming

$($$$7,800)$

$$4,000$

$$3,200$

$$2,400$

$$1,600$

$$800$

$15\%$

Note: All the number is in thousand $(,000)$

Before deciding, he wanted to know the return in both dollar value and percentage.

Calculate NPV for these projects.

Calculate IRR for these projects.

Why WACC for each project is different? Explain.

If these projects are independent projects, which project should he invest?

If these projects are mutually exclusive projects, which project should he invest?