Chatime is a really popular milk tea brand in Sydney. There has been a huge increase in demand of drinking milk tea among young people. The firm is considering between two mutually exclusively projects that both require $100,000 as an initial set-up cost.If they set up a store on the UNSW campus, it would require lower operating costs. Hence, it helps the firm to generate the annual cash inflows of $39,500 for three years starting from time t = 1 to time t= 3.If they set up the store in the CBD, it would incur higher operating costs resulting in only one cash inflow of $133,000 at time t= 3 and no cashflow at time t=1 andt=2.Based only on the information given, which project or projects would be preferred, and why?Select one:) a. Include both projects in the capital budgeting process since the sum of the cash inflows exceeds the initial investment in both cases.b. Choose to set up on UNSW campus because it has a higher IRR.c. Choose neither project since their NPVs are negatived. Choose to set up in the CBD because it has a higher IRR ) e. Indifferent between projects because both have equal IRRs.