Star plc. is a property developer and considers three investment projects. The cash flows for each project are shown in the following table. The three projects will be finished in two years. Assume that the discount rate is 12% per year. Initial investment Year 1 Year 2 Project A-2 million 7 million 1 million Project B-1 million 1.5 million 4 million Project C-1 million -0.5 million 6 million i) Calculate NPVs for the projects of A, B, and C. If Star plc. can only choose one project to invest, which project should the firm choose to invest in terms of NPV? (10 marks) ii) Calculate the profitability index (PI) for the projects of A, B, and C. If the three projects are independent, which project(s) should the firm choose to invest in terms of PI? (5 marks) iii) Calculate the payback period for the projects A and B. In terms of the payback period, which project(s) should the firm choose to invest between A and B (ignore project C)? What are the differences between the payback and NPV methods?(10 marks) iv). Assume that Star plc. has only a 2 million budget for investing, which project(s) should the firm invest in? Please justify your answer (10 marks)