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Basic scenario analysis ??Prime Paints is in the process ofevaluating two mutually exclusive additions to its processingcapacity. The? firm's financial analysts havedeveloped?pessimistic, most? likely, and optimistic estimates ofthe annual cash inflows associated with each project. Theseestimates are shown in the following table.Project AProject BInitial investment?(CF 0CF0?)?$12,800?$12,800OutcomeAnnual cash inflows?(CFCF ?)Pessimistic?$860?$1,530Most likely1,6801,680Optimistic2,5001,780a. Determine the range of annual cash inflows for each of thetwo projects.b. Assume that the? firm's cost of capital is 10.4% and thatboth projects have 17?-yearlives. Construct a table showing the NPVs for each project foreach of the possible outcomes. Include the range of NPVs for eachproject.c. Do parts ?(a?) and ?(b?)provide consistent views of the two? projects? Explaind. Which project do you? recommend? Why?