Problem 4: A company is considering two different kinds of robots to buy. Robot A has an expected life of 6 years, will cost $250 million, and will produce net cash flows of $68 million per year. Robot B has a life of 5 years, will cost $210 million, and will produce net cash flow of $56 million per year. The company plans to use robots for many decades. The company's cost of capital is 11%. a By how much would the value of the company increase if it accepted the better project? bi What is the equivalent annual annuity for each project? el Assume that the robot A plan will take place in a plant with 6.000 employees and the robot B will take place in a plant with 5.000 employees. Calculate the profitability index for both project with the number of employees being the resource. di What is a firm supposed to have a retum. WACC or IRR? Why? What is the difference between the two? How would you characterize the relation between the two? el Which methodology is better to choose a project and why! T ln what sense the payback period would be relevant