There are two mutually exclusive projects A and B. Both projects require an investment of $10 million but the timing is different for the rest of the expected net cash flows. For project A For project B - $10.0 million Period 0-$10.0 m Period 1 6.5 Period 2 Period 3 3.0 Period 4 1.5 Total Inflow $14.0m 3.5 m 3.5 3.5 3.5 $14.0m 3.0 Prepare 3 possible scenarios for each project. Use the 5% discount rate (WACC) for a forecast if these are low risk projects, 10% if we thinkthey have a normal amount of risk and 15% if we decide that these are high risk projects. 1 - Show the NPV's, the IRR's and the Payback Periods for each project on your spreadsheet. 2- Assume these projects are mutually exclusive. Which ones would you choose... a) using a 5% discount rate? b) using a 10% discount rate? c) using a 15% discount rate? 3 - Assume the projects are independent, which ones would you choose at each discount rate (in each scenario?)