Problems SHOW ALL WORK 1. The firm is considering two independent proiects both with an initial investmen3 $200,000. The firm's cost of capital is 10% The maximum acceptable payba years. Show the calculator keys used to calclate NPV and IRR. (no credit will be given * the keys used to calculate the problem are not shovn for NPV and IRR). The cash inflows are: Project Blue cash inflow $200,000 $100,000 $125,000 Project Red cash inflow $150,000 $165,000 $190,000 Year 3 Calculate the payback period for each project. Should the firm accept the projeets ints) Calculate the NPV for each project. Should the firm accept the projects? (7 point alculate the IRR for each project. Should the firm accept the projects? (7 point- 2. A firm must choose from 5 independent capital budgeting proposals outlined below. The firm is subject to capital rationing and has a budget of $350,000. The firm's cost of capital is 12%. (4 points) Initial Investment $100,000 $200,000 $125,000 $100,000 $ 75,000 IRR 17% Project 15% 14% 11% 19% sing the IRR approach to rank projects, which projects should the firm accep 12345n