Use the following information for Questions 1 through 3:Assume you are presented with the following mutually exclusive investments whose expected net cash flows are as follows:EXPECTED NET CASH FLOWS:Year Project A Project B0 ?$400 ?$6501 ?528 2102 ?219 2103 ?150 2104 1,100 2105 820 2106 990 2107 ?325 210 1. (a) What is each projects IRR?(b) If each projects cost of capital were 10%, which project, if either, should be selected? If thecost of capital were 17%, what would be the proper choice? 2. (a) What is each projects MIRR at the cost of capital of 10%? At 17%? (Hint: Consider Period 7 as the end of Project Bs life.) 3. What is the crossover rate, and what is its significance? Use the following information for Question 4:The staff of Porter Manufacturing has estimated the following net after-tax cash flows and probabilities fo a new manufacturing process:Line 0 gives the cost of the process, Lines 1 through 5 give operating cash flows, and Line 5* contains the estimated salvage values. Porters cost of capital for an average-risk project is 10%. Net After-Tax Cash FlowsYear P = 0.2 P = 0.6 P = 0.20 ?$100,000 ?$100,000 ?$100,0001 20,000 30,000 40,0002 20,000 30,000 40,0003 20,000 30,000 40,0004 20,000 30,000 40,0005 20,000 30,000 40,0005* 0 20,000 30,000 4. Assume that the project has average risk. Find the projects expected NPV. (Hint: Use expected values for the net cash flow in each year.)