CEIC 2 e Question No 25 (8 points) Cost of Capital An investor is presented with the following two mutually exclusive projects to invest in. Year 4 8% 7% Time: Year o Year 1 Investment A. Investment B: -$1.3 million $500,000 $400,000 $300,000 $200,000 $100,000 projects should he invest in? (8 Points) Calculate the NPV and profitability index for each of the two projects. Which of the two Year 2 Year 3 Year 5 -$1.5 million $300,000 $300,000 $300,000 $500,000 $500,000 You must show your work to get credit