a$.$ Find the NPV for each project. Are the projects acceptable? b$.$ Find the break$-$even cash inflow for each project. d$.$ Which project is more risky? Which project has the potentially higher NPV$?$ Discuss the risk$-$return trade$-$offs of the two projects. e$.$ If the firm wished to minimize losses $($that is$,$ NPV $<mtext></mtext><mi>\backslash </mi>$$$0$yhich project would you recommend? Which would you recommend if the goal was achieving a higher NPV$?$ a$.$ The NPV for project "standard" is $\backslash (\backslash$$ $\backslash )($Round to the nearest cent.$)$ The NPV for project "custom" is $\backslash (\backslash$$ $\backslash )($Round to the nearest cent.$)$ Are the projects acceptable? $($Select the best answer below.$)$ A$.$ Because the NPV for project "standard" is positive, project "standard" is acceptable. Because the NPV for project "custom"is negative, project "custom" is unacceptable. B$.$ Because the NPV for project "standard" is negative, project "standard" is unacceptable. Because the NPV for project "custom" is negative, project "custom" is also unacceptable. C$.$ Because the NPV for project "standard" is negative, project "standard" is unacceptable. Because the NPV for project "custom" is positive, project "custom" is acceptable. D$.$ Because the NPV for project "standard" is positive, project "standard" is acceptable. Because the NPV for project "custom"is positive, project "custom" is also acceptable. b$.$ The break$-$even cash inflow is the level of cash inflow neccessary for the project to produce an NPV of zero, as shown in the following formula: $\backslash [\backslash$mathrm$\{$NPV$\}=0=\backslash$frac$\{\backslash$mathrm$\{$PMT$\}\}\{$r$\}\backslash$times$\backslash$left$(1-\backslash$frac$\{1\}\{(1+$r$)^\{$n$\}\}\backslash$right$)-$C F$\_\{0\}.\backslash ]$ The PMT for project "standard" is $\backslash$$ $($Round to the nearest cent.$)$ The PMT for project "custom" is $\backslash (\backslash$$ $\backslash ).($Round to the nearest cent.$)$ c$.$ The firm has estimated the probabilities of achieving various ranges of cash inflows for the two projects, as shown in the table $.$What is the probability that each project will achieve the breakeven cash inflow found in part $($b$)?($Select the best answer below.$)$ d$.$ Which project is more risky? Which project has the potentially higher NPV$?$ Discuss the risk$-$return trade$-$offs of the two projects. $($Select the best answer below.$)$

A$.$ Both project"standard" and project "custom" are equally highly risky.

B$.$ Both project "standard" and project "custom" are equally low risk projects.

A$.$ If the firm wishes to minimize losses, it should choose project "custom"; to achieve higher NPV$,$ choose project "standard".

B$.$ If the firm wishes to minimize losses, it can choose either project "standard" or project "custom".

C$.$ If the firm wishes to minimize losses, it should choose project "standard"; to achieve higher NPV$,$ choose project "custom".

D$.$ If the firm wishes to achieve higher NPV$,$ it can choose either project "standard" or project "custom". Data table

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}$

$\backslash$hline $\backslash$multirow$[$b$]\{2\}\{*\}\{$Range of cash inflow $(\backslash$$ millions$)\}$ & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Probability of achieving cash inflow in given range$\}\backslash \backslash$

$\backslash$hline & Standard Plant & Custom Plant $\backslash \backslash$

$\backslash$hline $\backslash$$$0$ to $\backslash$$$5$ & $0\backslash \%$ & $5\backslash \%\backslash \backslash$

$\backslash$hline $\backslash$$$5$ to $\backslash$$$8$ & $10$ & $10\backslash \backslash$

$\backslash$hline $\backslash$$$8$ to $\backslash$$$11$ & $60$ & $15\backslash \backslash$

$\backslash$hline $\backslash$$$11$ to $\backslash$$$14$ & $25$ & $25\backslash \backslash$

$\backslash$hline $\backslash$$$14$ to $\backslash$$$17$ & $5$ & $20\backslash \backslash$

$\backslash$hline $\backslash$$$17$ to $\backslash$$$20$ & $0$ & $15\backslash \backslash$

$\backslash$hline Above $\backslash$$$20$ & $0$ & $10\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$