Contract Manufacturing, Inc., is considering two alternative investment proposals. The first proposal calls for a major renovation of the company's manufacturing facility. The second involves replacing just a few obsolete pieces of equipment in the facility. The company will choose one project or the other this year, but it will not do both. The cash flows associated with each project appear below, and the firm discounts project cash flows at 15%. Year Renovate Replace 0 1 2 -$9,000,000 3,500,000 3,000,000 3,000,000 2,800,000 2,500,000 -$1,000,000 600,000 500,000 400,000 300,000 200,000 3 4 5 a. Rank these investments based on their NPVs. b. Rank these investments based on their IRRs. C. Why do these rankings yield mixed signals? d. Calculate the IRR of the incremental project. Reconcile your answer to this question with those from parts (a) and (b)