Consider the following mutually exclusive projects. The appropriate WACC for both projects is 5% per year. 1. Using the cash flows as given above, what is the Net Present Value (NPV) of Project REC? What is its Internal Rate of Return (IRR)? 2. Using the cash flows as given above, what is the Net Present Value (NPV) of Project XYZ? What is its Internal Rate of Return (IRR)? 3. Using the Replacement Chain method, which of the two mutually exclusive projects should be chosen? Why? 4. Using the Equivalent Annual Annuity (EAA) method, which of the two mutually exclusive projects should be chosen? Why? 5. Which project would you choose if they were independent? Why