Please do all problems by hand and show all steps:

1. Scale differences: Two capital investment projects have the following forecasted cash flows: Year A B 0 -$100,000 -$50,000 1 +$25,000 +$10,000 2 +$30,000 +$15,000 3 +$40,000 +$25,000 4 +$30,000 +$15,000 5 +$25,000 +$15,000 a. Compute the NPV of both projects at a zero percent discount rate. b. Compute the NPV of both projects assuming a 16 percent cost of capital. c. The IRR of Project A rounded to the nearest whole percent is 15%. What is the IRR of Project B rounded to the nearest whole percent? d. Use a timeline to show the incremental cash flow stream. e. If the projects are independent, based on the IRR rule, which one, if any should be selected? f. If the projects are independent, based on the NPV rule, which one, if any should be selected? h. If the projects are mutually-exclusive, based on the IRR rule, which one, if any should be selected? f. If the projects are mutually-exclusive, based on the NPV rule, which one, if any should be selected? g. If the projects are contingent (you can't take one unless you also take the other) what should the firm do? i. Draw the NPV profiles of both projects. Based on your answers to parts (a) and (c) be certain to show the NPV-axis and k-axis intercepts