The balance sheet of Precise Counting Co. (PCC) appears below. It wants to evaluate three different new investment projects that will be used to develop the next generation of vote-counting machines. The cash flow estimates of these projects appear below as well. PCC uses its WACC for capital budgeting purposes. a. What are the NPVs of the projects? If only one project can be accepted, which one should PCC accept? b. What are the IRRs of the projects? If only one project can be accepted, which one should PCC accept? c. Based on both IRR and NPV, which project should PCC accept and why? 2020 Balance Sheet of PCC Cash 750,000 Accounts Payable 750,000 Inventory 1,900,000 Long-Term Debt 6,400,000 Accounts Receivabl 900,000 Common Stocks 8,500,000 Net Fixed Assets 13,200,000 Accumulated Retair 1,100,000 Total 16,750,000 Total 16,750,000 Required Return by Creditors 6.1% Required Return by Shareholders 21.0% Tax Rate 25.0% Cash Flows for PCC Projects Costs 1 2 3 4 5 6 7 8 9 10 CVX Project -1,200,000 800,000 700,000 100,000 50,000 30,000 20,000 10,000 5,000 VZ Project -3,200,000 800,000 700,000 1,000,000 1,200,000 1,500,000 WBA Project -2,600,000 900,000 800,000 400,000 300,000 400,000 400,000 400,000 400,000 400,000 400,000