Part 1: Project Selection (from Week 4) 1. Which project should you choose between Project A and B ? Project A has a total benefit of $500,000 and a total cost of $450,000 - Project B has a total benefit of $600,000 and a total cost of $500,000 2. What's the payback period when the initial investment is $500,000, cash inflow in year 1 is. $100,000, cash inflow in year 2 is $130,000, cash inflow in year 3 is $160,000, cash inflow in year 4 is $190,000, and cash inflow in year 5 is $220,000? 3. What's the payback period when the initial investment is $500,000, cash inflow in year 1 is $100,000, cash inflow in year 2 is $100,000, cash inflow in year 3 is $100,000, cash inflow in year 4 is $100,000, and cash inflow in year 5 is $100,000? 4. What's the NPV when the initial investment is $500,000, cash inflow in year 1 is $200,000, cash inflow in year 2 is $200,000, cash inflow in year 3 is $200,000, cash inflow in year 4 is $200,000, cash inflow in year 5 is $200,000, cash inflow in year 6 is $200,000, cash inflow in year 7 is $200,000, and cash inflow in year 8 is $200,000 ? The required rate of return is 15%. Show how to calculate manually. Also show what Excel formula you would use to calculate the NPV. 5. What would be the IRR with the given data in Q4