D Question 21 20 pts Your firm is considering two proposed projects, both with 5-years expected lives and identical initial outlays of $110,000. The required rate of return on both projects is 12%. The expected free cash flows from each project are as followings: Project A Project B Initial Outlay -$110,000 -$110,000 Year 1 40.000 Year 2 Year 3 20,000 30,000 40,000 50,000 70,000 40,000 40,000 Year 4 40,000 Year 5 40,000 1. What is each project's payback period? (5 points) 2. What is each project's NPV? (5 points) 3. What is each project's PIP (5 points) 4. Which project should be accepted? Why? (5 points) HTML Editor