The Safa Corporation is considering purchasing one of two new equipment for the upcoming year. The more expensive of the two is better and will produce a higher yield. Assume these projects are mutually exclusive and that the required rate of return is 10 percent. Given the following free cash flows: PROJECT B -$5,000 6,000 PROJECTA Initial outlay Inflow year 1 -$500 700 a. Calculate the NPV of each project. b. Calculate the Pl of each project. c. If there is no capital-rationing constraint, which project should be selected? If there is a capital rationing constraint, how should the decision be made