tare of return on teie stock in the past tew year has been 19\%, and HFGC managers beleve that 19% is a reasonable figure for the femis cost of captal. To suatain a High growth rede, HFGC's CEO argues that the company must consnue to invest in projocts that offec the highent rate of refum postible. Two projects are curmenty under reviow. The frit is an exparaion of ine fermin producjion capacily, and the second peoject lmolves lateoducing one of the frmis exising produch into a new market Cash fows from each project appear in the following tabie: 2. Caviculate the NPV for both projecti. Rank the peojects based on their NPVs b. Carculate the IRR lor boh projects. Rank the projects based on their IRRA c. Calculate the Piffor both projects. Fackic the prejects based on their Pis. d. The firm can orly alford to undertake one of these irvestments. What do you thirik the ferm should da? Data table into a spreadsheet.) Integrative-Conflicting Rankings The High-Flying Growth Company (HFGC) has been expanding very rapidly in recent years, making its shareholders rich in the process. The average annual rate of return on the stock in the past few years has been 19%, and HFGC managers believe that 19% is a reasonable figure for the firm's cost of capital. To sustain a high growth rate, HFGC's CEO argues that the company must continue to invest in projects that offer the highest rate of return possible. Two projects are currently under review. The first is an expansion of the firm's production capacity, and the second project involves introducing one of the firm's existing products into a new market. Cash flows from each project appear in the following table: a. Calculate the NPV for both projects. Rank the projects based on their NPVs. b. Calculate the IRR for both projects. Rank the projects based on their IRRs. c. Calculate the PI for both projects. Rank the projects based on their Pls. d. The firm can only afford to undertake one of these investments. What do you think the firm should do