QUESTION 2 Consider the following projects: Project A B CO -5,000 -3,000 -2,000 Cash Flow (E) C1 C2 C3 +5,000 0 0 +1,000 +1,000 +3,000 +1,000 +500 0 C4 0 +1,500 +1,200 C5 0 +1,500 +1,200 Required i. If the opportunity cost of capital is 10%, compute the projects' NPV. Which project(s) should the firm accept? (5 marks) Calculate the payback period for each project. Which project(s) would a firm using the payback rule accept , if the cut-off period were three years? (5 marks) Calculate the internal rate of return (IRR) of project A. (5 marks) If we only have 5,000 to invest, which project(s) should we select and why? (5 marks) iii. iv