Question 7 (10 marks = 3+3+2+2) The annual cash flows (in million dollars) of two projects are provided in the following table: 1 2 Year 0 Project 1-100 Project 2-100 70 60 0 144 Suppose that the annual interest rate is 3%. (1) Determine the present value, to four decimal places, for each project. Which project would you choose based on these figures? (2) Consider Project 3 that generates the following cash flows in million dollars): 2 Year 0 1 Annuity -100 AO A0 Assume that Project 3 has the same present value as Project 2. Determine Ao, to four decimal places. (3) Using the value of Ag from part (b), what is the internal rate of return for Project 3? Report your answer in percentage, rounded to two decimal places. (4) Calculate also the internal rate of return in percentage for Project 2. What is your recom- mendation, Project 2 or Project 3, based on internal rate of return