Problem 2. (16 pts) NPV and IRR critetion. We consider two investment projects with the following cash flows: 1. (8 pts) Suppose the annual compounding rate is 6%. Calculate the NPV at the initial time 0 of these two projects and find which one is higher. 2. (8 pts) Suppose now that we are interested in the IRR. Denote rA,rB as the IRRs of project A and B respectively. Verify that rA=13.22%. Now calculate the NPV of project B by taking the rA as its discount rate. Without finding rB exactly, can you determine whether rs is higher than rA ? Justify your