Problem 3 Your best friend comes to you and offers you to choose from the following projects (Project A and Project B). The cost of taking on project A is $350,000 and the cost of taking on project B is $400,000. The end-of-year net cash flows each project generates are provided in the table below. The opportunity cost for project A is set at 8.0% and the one corresponding to project B is set 8.0%. End-of-Year 1 2 3 4 5 Project A Cash Flows $200,000 $100,000 $50,000 $100,000 $200,000 Project B Cash Flows $50,000 $200,000 $200,000 $200,000 $50,000 (a) Would you pick any of these projects? If yes which project will you pick as your favorite? (b) What is the internal rate of return built-in in each of these project? (c) What is the annual return on investment for your favorite project