Capital Budgeting Scared Skiing Limited is contemplating expanding the firm's business operations. The management is considering two mutually exclusive projects. The first project is to build a factory to produce ski-shoes. The second project is to build an apartment building to rent out commercial and residential space. The first project has a life span of 5 years and the second project has a life span of 7 years. The cashflows for the two projects are highlighted in the table below: Cash Flow Initial Outlay Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Project #1 $75,000,000 $14,000,000 $17,000,000 $20,000,000 $23,000,000 $18,000,000 $13,000,000 $5,000,000 Project #2 $51,000,000 $20.000.000 $15,000,000 $30,000,000 $17,000,000 $22,000,000 The firm's management determined the firm's weighted average cost of capitais 17% Required: 1. Compute the NPV for Project #1. 2. Based on you answer to Requirement 1, is the IRR of Project #1 higher or lower than the firm's weighted average cost of capital? 3. Compute the NPV for Project #2? 4. You must select either Project #1 or Project #2. Which would you select? Show key working to support selection