Question 3 (28 marks) Your company wants to determine the feasibility of two capital budgeting projects, and has given you the task of analyzing them. Because the projects are at the early "idea" stage, they are referred to simply as Project A and Project B. Each project has a cost of $50,000, and a cost of capital of 12%. Their expected net cash flows are: Expected Net Cash Flows Year Project A ($) Project B ($) 0 (50,000) (50,000) 1 26,500 18,500 2 18,000 17,500 3 12,000 15,500 4 7,000 15,500 (a) Calculate each project's payback period. (4 marks) (b) Calculate each project's net present value (NPV) (10 marks) (c) Calculate each project's internal rate of return (IRR). (10 marks) (d) Which project(s) should be accepted if they are independent? (2 marks) (e) Which project should be accepted if they are mutually exclusive? (2 marks)