1. Fred Mercury is evaluating two investment opportunities Project Queen and Project King. Fred has a rate of return of 15%. The cash flows for each investment are presented in the table below:

	Expected cash inflow
Year	Project Queen	Project King
0	($280,000)	($320,000)
1	$22,000	$170,000
2	$48,000	$110,000
3	$55,000	$140,000
4	$395,000	$50,000

1. 1. Which projects (if any) are acceptable if Fred uses NPV to make his capital budgeting decision? EXPLAIN
2. 2. Which project (if any) should Fred choose if he uses NPV to make his decision?
3. 3. Which projects (if any) are acceptable if Fred uses IRR to make his capital budgeting decision? EXPLAIN.
   4. Which project (if any) should Fred choose if he uses IRR to make his capital budgeting decision?

In the case that your rankings above for IRR and NPV do not agree, which project (if any) should Fred choose and why?