Consider the following two investment projects: Year Project A Project B 0 -$150 -$150 1 60 70 2 60 85 3 60 70 4 60 0 Both the projects are equally risky, and the opportunity cost of capital is 12 percent. a. Find the NPV of both the projects. [3 + 3 = 6 marks] Note: You must show all the process deriving NPVs. You however can use financial calculator or excel to verify your answer(s). b. If the projects are mutually exclusive which project would you choose and why? If the projects are independent projects which project(s) would you choose and why? [2+2 =4 marks] c. Find the IRR of both projects. [2+2 = 4 marks] Note: You can use financial calculator or to find IRR. BUT You MUST show that NPV would be positive if the discount rate is lower than IRR, and NPV would be negative if the discount rate is higher than IRR. For this purpose, you can use financial calculator or Excel. d. Compute Payback Period, Discounted Payback Period and Profitability Index for both the projects. Which project ranks betters based on these criteria? [6 marks