1. Consider the following two projects. 0 1 2 3 |--- Project A: -1,000 500 500 280 Project B: -1,000 430 430 430 NPV Profile NPV NPV1 Project B Project A NPV2 NPV3 r1 12 13 Project's cost of capital (=1) a) Find r1(crossover rate), 12, and 13.9 pts) b) If the project's cost of capital is 10% and the projects are mutually exclusive (only highest NPV project should be chosen), what project do you have to choose? What if the project's cost of capital is 3%? (6 pts)