Problem Two (20 marks) If the cost of capital is 10%, which project should be chosen? If the cost of capital is 20% which project should be chosen? Construct the NPV proles for Project A and Project B. (Note: plot the NPVs of both projects on the same graph.) The cost of capital ranges from 0% to 30% by increments of 2%. Expected Cash Flows Expected Cash Flows Year Project A Project B 0 -4,000 -6,500 1 -7,000 500 2 500 1,000 3 1,500 1,500 4 2,500 2,000 5 5,000 3,000 6 7 8 a) Calculate each project's IR and the crossover rate of the two projects. b) Calculate each project's MIRR at a cost of capital of 10%. 0) Calculate each project's regular payback period. (1) Calculate each project's discounted payback period with a cost of capital of 10%. e) Calculate each project's protability index at a cost of capital of 10%