Question 1 of 4 [33 marks) 00 Projects A and B are two investment projects being considered that are mutually exclusive and that have the following projected cash-flows: Year Project A Project B 0 $50,000 $50,000 $15,625 $0 $15,625 $0 3 $15.625 SO 4 $15,625 SO $15,625 899,500 Assume that the required rate of retum on the projects is 10% per year. Required: (a) According to the net present value rule, which projectis) should be chosen? 12 marks! (h) Explain the reasoning behind your answer to part (a), (4 marks) (c) Explain whether or not you should be cautious about evaluating these projects based instead on the internal rate of return rule. (5 marks] 07 "Strictly speaking, net present value (NPV) is the most appropriate method for evaluating an investment project. However, there remains the danger that relying on an expected positive NPV result alone will give the decision-maker a false sense of security." Explain whether or not you agree with these statements, and if you do how can further analysis around NPV help to prevent an otherwise potentially false sense of security? [12 marks]