PROBLEMS (80 points) Question 1 (15 points) a) You would like to invest in the following project. (5 points) Year Cash Flow O $130,000 1 $. 80,000 2 $ 94,000 Victoria, your boss, insists that only projects that can return at least $1.25 in today's dollars for every $1 invested can be accepted. She also insists on applying an 10% discount rate to all cash flows. Based on these criteria, should you accept the project and why? b) You are considering two mutually exclusive projects with the following cash flows. Will your choice between the two projects differ if the required rate of return is 7% rather than 10%? If so, what should you do? (10 points) Year Project A -$120,000 $ 0 0 $162,500 Project B $ 99,000 $ 55,400 $ 41,250 $ 22,500 WN