You are given with the following information of two projects planned by your company. The initial costs are given as: $$3$ million for project $A,$ and $$2\mathrm{.}5$ million for project B$,$ respectively.

Table $1$: $($in thousands$)$

$\backslash$table$[[$Project$,$Year $1,$Year $2,$Year $3,$Year $4,$Year $5],[$A$,-450,1250,-350,2200,2500],[$B$,360,952,400,875,2250]]$

Answer the following questions.

a$)$ Suppose the actual cost of capital is $15\%.$ What are the Net Present Values for these two projects?

b$)$ Suppose the financial manager discovered that if we postponed the project $B$ to two years later, the cost of capital could be $10\%$ due to possible low future interest rates. However, the deferment may cost the firm additional $$0\mathrm{.}5$ million to restart the facilities and the initial cost must be spent now, instead of two years later. Will you recommend waiting for additional $2$ years to start?

c$)$ Let the corporate income tax rate be $30\%,$ the cost of debts be $6\%,$ the cost of equity be $25\%$ and there is no preferred stock issued by the firm. What is the debt$-$toequity ratio for your company?

d$)$ Find the IRR $($Internal Rate of Return$)$ for project A and project B$.$

e$)$ Suppose that the cost of capital may be reduced from $15\%$ to $10\%$ if the firm deferred the project until one year later. What is the marginal advantage or disadvantage $($in terms of the today's NPV$)$ should the firm decide to do so on each project?