The following questions are conceptual questions on several topics that we have discussed in the course. In answering the questions, be clear and to-the-point. The motivation of your answer determines the grade. (i) Suppose you have to choose between three projects. All involve production technologies that will be discontinued at the end of their economic lives. Relevant project information is summarized below. Your supervisor expects a recommendation consistent with shareholder value maximization (his compensation package is linked to the share price of the firm). Which of the projects would you recommend to him, and how can you explain the difference in project rankings between the different capital budgeting criteria? Motivate your answer (no calculations are needed). (10 points) Project ABC t=0 t=1 1=2 1=3 IRR NPV @ 10% EA -$ 500,000 $250,000 $750,000 -$1,500,000 $750,000 $1,500,000 -$1,000,000 $250,000 $500,000 $1,250,000 33.1% $579,639 $233,082 50.0% $347,107 $200,000 28.1% $441,488 $242,857