1. Consider the four projects with cash flows as shown. Before proceeding to the questions, we will need to obtain FV for each project by using MARR = 10%, 20%. 2 Project n:o 1 2 3 A -1,000 900 500 100 B -1,000 600 500 500 -2,000 900 900 800 D +1,000 -402-402-402 a) Explain why the FV criterion prefers A over B at 20% when it prefers B over A at 10%. With MARR = 10%, how much money would you have at time 3 if you invested $1,000 of your own money in A? In B? b) Which of the following situations would you prefer? MARR = 10%; you invest $1,000 in B. MARR = 20%; you invest $1,000 in A. Explain your answer. c) With MARR =10%, how much money would you have at time 3 if you invested $2,000 of your own money in C? d) Explain why the FV criterion prefers A over C at 10%, even though in situation d the cash at time 3 is greater than that in situation b (for project A). e) What is the IRR for D? Would you accept D with MARR = 20%? How would you modify the IRR acceptance rule when examining project D? f) Suppose A and B are mutually exclusive projects. Which project would you select using MARR of 10% and the IRR criterion