You are asked to evaluate the following two projects for Adventures Club, Inc.: PROJECT D (Trips to Disneyland) $10,000 Investment Year 1 2 3 4 Cash Flow $4,000 $5,000 $4,200 $3,600 PROJECT F (International Film Festivals) Year Cash Flow $22,000 Investment 1 2 3 4 $10,800 $ 9,600 $ 6,000 $ 7,000 The firm's marginal cost of capital is 12 percent. A. For each project, calculate the net present value (NPV) and internal rate of return (IRR). If Projects D and F are independent projects, would you recommend accepting D, F, or both? B. If Projects D and F are mutually exclusive, which project would be preferable according to their NPVs and IRRs? Explain the reason for any difficulty encountered in ranking the two projects. C. Sketch NPV profiles for projects D and F. Place both projects on the same graph. Plot : points at discounts rates of 5%, 10%, 15%, and 20%, as well as the X and Y intercepts for each project. Calculate and plot the crossover point. In the absence of capital rationing, which project should be chosen? D. If the firm is experiencing severe capital rationing, which project would be preferable? Which criterion (NPV or IRR) are you using in this case and why? E. Calculate the profitability index (PI) for projects D and F. How will the size of the budget affect the selection of the project? When would you use PI instead of NPV? If you use PI to select the preferable project, what will be the opportunity cost to the stockholders