Question 9 Please organize your answers and provide all calculations where necessary in order to earn maximum marks. Langley Co is considering two projects that will each cost $1,500,000 initially and both projects will last 5 years: Project A This project will require $125,000 of initial working capital, and will generate $420,000 cash inflows per year for the 5 years, at the end of which time it will be scrapped with no residual value. The working capital will also be released at the end of the 5-year period to be used for other new projects. Project B In addition to the original investment, Project B will need $125,000 in Year 3 in order to maintain the equipment at peak capacity, and will generate $450,000 in annual cash inflows. It will be scrapped and sold as salvage for $75,000 in its final year. The interest rate is 8%. Required: 1) Use net present values to determine the more acceptable of the two projects. 2) Determine the internal rate of return of each project: Is it above [ ], or below[ ] 8%]. Does the IRR support your recommendation in 1)