How to calculate this question?

Part II: Long Questions (60 points in total, 20 points for each Question) Note: Please choose 3 out of 4 questions to answer. If you answer all questions, only the first 3 questions will be marked. You do NOT need to type the original applicable formula that contains complicated mathematical operators like the summation sign and Greek symbols. It is sufficient to type just the equation with the applicable numbers. For example, if a question asks you to compute the variance of returns, it will be sufficient to show your work by typing something like "Variance= 0.6 0.15^2 + 0.25 0.05^2 + 0.15 0.12^2 = 0.016285" XYZ Co. is considering two mutually exclusive advertisement campaigns. The incremental free cash flows of the two projects are as follow: Year O Year 1 Year 2 Year 3 Year 4 Project A -450 380 380 380 -700 Project B -700 300 300 350 100 (a) Provide two reasons on why XYZ Co. should not apply the IRR rule to make capital budgeting decisions. (10 points) (b) Suppose a required rate of 10% is required on your investment. Based on NPV criterion, which project will you choose? (10 points, show calculation as well) Your Answer: Bull