QUESTION 5 An investor is currently studying four potential investments in the Great Toronto Area. The table below provides the rst cost as well as the overall and incremental Internal Rate of Return {IRE} for the four investments that are currently being studied. Use the information in the table to answer the following. (Hint: for instance, the l 1% in the table below could be interpreted as IRRMJ. First IRR on [RR on Increments of Investment Cost Overall Com rare-d 1With. Pro'eet a} If the four investments are independent, which projects should be selected at MARE of 16%? [5 Marks} b) if the four investments are mutually exclusive, which project should be selected at MARK of 14% (Note: do nothing is a possible alternative). {12 Marks) c} State the case(s) in which a rate of return method is recommended. {3 Marks] d} Is it always necessary for the altemative with the highest rate of return to be the best altemative'? {5 Marks}