A firm is considering two projects. Both have an initial investment of $1,000,000 and pay off over the next five years as shown in option 1 and option 2. The cost of capital is 6%. Year 0 Year 1 Option 1 Option 2 -1,000,000 250,000 -1,000,000 1,000,000 Year 2 0 250,000 Year 3 0 250,000 Year 4 0 250,000 Year 5 100,000 250,000 Required: Using the information above, answer the questions shown in the left column. Question a. Which of these has a faster payback period? b. Which of these options has a higher net present value? c. Which of these options has a higher internal rate of return (IRR)? Option