Moving to another question will save this response. uestion 4 Which of the following statements is true regarding the NPV and IRR methods? Select all that apply 1. The IRR method adjusts for the timing of cash flows and is therefore superior to the NPV method. D. The NPV method adjusts for the risk of an investment and is therefore superior to the IRR method. 1. The NPV method is adjusted for the scale of an investment and is therefore superior to the IRR method. IV. The IRR method adjusts for the risk of an investment and is therefore superior to the NPV method. OV. The NPV method adjusts for the timing of cash flows and is therefore superior to the IRR method. VI. The IRR method is adjusted for the scale of an investment and is therefore superior to the NPV method. A Moving to another question will save this response. Question uestions 5 points The table below shows free cash flow projections for four different projects. In addition, the table also shows the NPV, IRR, and Payback period for each project. If you can only invest in or project, which one should you pick? Year 0 1 Project IV (10,000) 1,000 2,000 2. Project III (20,000) 5,000 10,000 15,000 5,000 3 Project Free Cash Flows Project 1 Project 11 (20,000) (10,000) 5,500 5,500 5.500 5,500 5,500 5.500 5,500 40,000 9.00% 13.00 7.681.24 7.002.43 19.68% 21.90 4 7 4 5 3,000 4,000 5,000 14,000 6 12.00% 7 Interest Rate NPV RR Payback Period (in Years) OL Project Il Project 11.00% 6,882.25 25.3390 3 7,094.63 26.63% O III. Project Ill IV. Project IV V. None TEL kuublion 7 5 points Suppose your firm has unlimited cash for investments but is limited with the number of labor hours it can allocate across different projects. For each project calculate the profitability based on labor hours. Order the projects by their profitability index with the highest first. Project Initial Investment in Smillions) NPV (in 5 millions) Labor Hours Required A 80 B 55 100 80 20 45 70 30 D 50 60 65 90 Project A Project B Project Project D