Q.3. Consider the following two mutually exclusive projects: Year 0 1 Cash Flow ($250,000) 85,000 85,000 85,000 85.000 Cash Flow ($65.000) 24,000 24,000 24,000 24,000 2 3 4 Whichever project you choose, if any, you require a 15 percent return on your investment a) If you apply the discounted payback criterion, which investment will you choose? Why? b) If you apply the NPV criterion, which investment will you choose? Why? c) If you apply the IRR criterion, which investment will you choose? Why? (guess is near 15%). d) If you apply the profitability index criterion, which investment will you choose? Why? e) Which project(s) should be accepted in each of the following situations: a. The projects are mutually exclusive and there is no capital constraint. b. The projects are independent and there is no capital constraint