Suppose you are a financial manager for the Shah Corporation and trying to decide between the following two mutually exclusive projects:

The firm is facing capital rationing challenges. Given the current economic situation, the minimum required rate of return for both projects is 5.99%. Based on the given information, which project should you accept and why? Please show all the calculations by which you came up with the final answer.

A AaBb DdE AaBhCeDdEe AaBbceDe AaBbceDdEt AaBb Aasbccdd Normal No Spacing Heading 1 Hending 2 Title Subtitle Chapter 9 4) Suppose you are a financial manager for the Shah Corporation and trying to decide between the following two mutually exclusive projects: Project 1 Year 0 2 3 CF -1,894,000 550,000 -233,000 399,000 4 366,000 5 6 498,000 -123,000 7 8 9 10 869,000 -955,000 898,000 996,000 Project II Year 0 2 CF -1,894,000 388,000 598,000 3 -29,000 4 468,000 5 412,000 6 -298,000 8 -156,000 855,000 9 10 476,000 501,000 The firm is facing capital rationing challenges. Given the current economic situation, the minimum required rate of return for both projects is 5.99%. Based on the given information, which project should you accept and why? Please show all the calculations by which you came up with the final answer. (8 Points) Answer: FOCUS 5