Question: Problem 1 Your firm is considering mutually exclusive projects with the following cash flows. The firm has a weighted average cost of capital of 9

Problem 1Your firm is considering mutually exclusive projects with the following cash flows. The firm has a weighted average cost of capital of 9%.Year0121345Cash Flow Project A-$1,500,000Cash Flow Project B$2,500,000-$1,500,000-$25,000-$35,000$2,000,000$1,000,000$1,000,000$1,500,000$2,000,000-$500,000$4,000,000A. Are the cash flows for Project A regular or irregular cash flows? Why?B. Are the cash flows for Project B regular or irregular cash flows? Why?C. The firm typically accepts projects that payback in four years or less. Which project(s), if any, should the firm accept?D. Decide which project(s) the firm should accept using the best capital budgeting metric. Please provide the metric calculations as well as a rationale for your decision.

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