QUESTION 26 Devon wants to install a new air conditioning system in his manufacturing plant. He has two offers - the HCC (high capital costs) and LCC (low capital cost). HCC has a high capital cost but relatively low operating cost, while the LCC has a low capital cost but high operating costs because it uses more electricity. The cash flows of the competing systems are shown as follows: Year LCC HCC 0 $ 400,000 $-500,000 1 $100,000 $140,000 2 $100,000 $ 190,000 3 $100,000 $170,000 4 $100,000 $ 180,000 5 $ 100,000 $ 120,000 ANSWER THE FOLLOWING PARTS FOR THIS QUESTION: a, It the required return for Devon's company is 7%, what is the NPV of each project (9 points) b. Which project should Devon choose and why? (point) SHOW YOUR WORK WITH FORMULAS, CALCULATIONS, AND RESULT IN THE SPACE BELOW. ROUND YOUR ANSWER TO TWO DECIMAL PLACES