Ellmann Systems is considering two investment projects, K and L. Both projects have equal lives and equal up-front expenditures. Project K has the following cash flow and WACC data. Project K WACC: 10.00% Year 0 1 2. 3 Cash flows - $1,000 $500 $500 $500 What is the NPV of Project K(NPV)? 1) $265.65 2) $288.93 3) $243.43 4) $225.00 5) $205.55 The CFO of Ellman Systems estimated the NPV for Project L(NPV) as $225. Assume that the company has no limit for capital expenditures. If the two projects are independent, which project(s) should the firm undertake? Why? 1) Accept both projects since both projects have positive NPVs. 2) Reject both projects since both projects have non-negative NPVS. 3) Accept Project K since NPVK NPVL. 4) Accept Project L since NPVK NPVL: 5) Insufficient information is given. The CFO of Ellman Systems estimated the NPV for Project L (NPV) as $225. Assume that the company has no limit for capital expenditures. If the two projects are mutually exclusive, which project(s) should the firm undertake? Why? 1) Accept both projects since both projects have positive NPVS. 2) Reject both projects since both projects have non-negative NPVs. 3) Accept Project K since NPVK > NPVL 4) Accept Project L since NPVK