Problem 1. (25 marks) Music Company is considering investing in a new project. The project will need an initial investment of $2,400,000 and will generate $1,200,000 cash flows each year for three years. Calculate the NPV for the project if the cost of capital is 15%. Would you invest in this new project? Problem 2. (25 marks) A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 2 3 4 5 H + Project 1 - $200 $75 $75 $75 $190 $190 Project 2 - $650 $250 $250 $125 $125 $125 Which project would you recommend? Explain