Challenge 3 (30 points) al net benefits (not including the investment) are given. You are trying to decide if the annual net beehts are large enough to justify any ou have been asked to evaluate 4 projects. The NPV of the investment and the equivalent uniform annu ofthe inves tments. The minimum acceptable rate ofreturn for your firmis10%, Problem 7 Investment and Benefit Data for Four Projects NPV (Using al wo Investment (NPV as Equivalent Annual Net of time zero $1 milliorn $2 million $2.6 million $4 million method) Benefits $130,000 $190,000 $286,000 $480,000 IRR 13% 9.5% 11% | 12% Project Question 3.a. (10 points) Calculate the NPV for each project and fill in Table 1.1. In calculating the NPV, assume the annual net benefits continue forever, so that you can use the capital worth method. Question 3.b. (10 points) Assume that these projects are independent, so that the firm could carry out any or all of them. Which projects are justified using the NPV method? Which are justified using the IRR method? Question 3.c. (10 points) Assume that these projects are mutually exclusive alternatives for developing a specific site. Which project is best? Why? Projede: -h.nen.) A. A