What is the NPV of each project if the cost of capital is r=4%?

State in one short sentence why the NPV rule is better than IRR for this project

Suppose that your firm has a payback period of 2 years. Which project would the payback period rule tell you to choose, and why?

Name at least one reason why the payback period is a bad investment decision rule.

Suppose that the cost of capital for A is still 4%. However, you find that B is riskier, and the cost of capital is 5%. What is the cash flow at time t = 3 for project B that makes you indifferent between A and B?

Information

t	0	1	2	3
Project A	-100	10	10	400
Project B	-100	100	10	10