Question text Flamingo Corporation is considering an expansion. Project A would involve opening a new location in Las Vegas, and Project B would involve opening a new location in Reno. Project A Project B Initial cash outlay $(1,400,000) $(1,400,000) Upgrades required in year 3 (150,000) (320,000) Future cash inflows: Year 1 $ 600,000 $ - Year 2 600,000 - Year 3 600,000 400,000 Year 4 600,000 900,000 Year 5 600,000 1,000,000 Total cash inflows $3,000,000 $ 2,300,000 The companys cost of capital is 6%, which is an appropriate discount rate. Required: a) Compute the net present value of each project. (6 marks) b) Assume Flamingo Corporation has limited funds to invest and is considering two projects, both with positive net present values. Explain (no calculations needed) how the two projects should be ranked and evaluated.