6 is a 4 part question.

6. (26 points) Your division is considering two facility investment projects, each of which requires an upfront expenditure of $15 million. You estimate that the investments will produce the following net cash flows: $5,000,000 $8,000,000 14,000,000 12,000,000 $8,000,000 4,000,000 (a) (7 points) What are the projects' net present values when the cost of capital is 5%? Which project has the greater NPV? NPVs Which has greater NPV (b) (7 points) What are the projects' NPVs when the cost of capital is 10%? which project has the greater NPV Which has greater NPV? (c) (7 points) What are the projects' NPVs when the cost of capital is 15%? which project has the greater NP? Which has greater NPV? (d) (5 points) Do alternative rates change the decision? Would the decision eventually change if the discount rate continued to increase? Explain