Question 6: Financial Decisions for Engineering Your firm has been offered the following three projects: 10 year project; Initial investment: $5,000,000, cost of capital: 10%; Returns $0 in 8 year project: Initial investment: $1,000,000; Cost of capital: 25%; Returns 12 year project; Initial investment: $20,000,000; Secondary investment: $5,000,000 Project 1, years 1 and 2, $1,200,000/year for years 3-10. $500,000/year. after 4 years; Cost of capital: 8%; Returns $2,500,000/year for years 1-4; $3,500,000 for Project 2. Project 3. years 5-8; $4,500,000 for years 9-12. The staffing requirements of the projects are such that if you take on project 3, you will not be able to take on any further projects. However projects 1 and 2 could be undertaken simultaneously. Which projects should your firm undertake to maximize return? If the cost of capital for project 3 was reduced to 6%, would this change your decision? Using the above details, write an email to your supervisor explaining your recommendations. (Provide any code or worksheets you use to justify your response.)