10. Janet Grant graduated from Mona School of Business and has been a Junior Financial Analyst at Proven Investment Ltd. When she arrived at work this morning, she found the following memo in her e-mail. TO: Janet Grant FROM: J. C. Bens, CFO, Proven Investment Ltd. RE: Capital Budgeting Analysis Provide an evaluation of the two proposed projects whose cash flow forecasts are found below: Product A Product B Initial cost $900,000 $1,000,000 Expected life 5 years 5 years Scrap value expected $ - $75,000 Others expected cash inflows: Year $ $ 1 180,000 200,000 2 300,000 250,000 3 230,000 250,000 4 330,000 300,000 5 300,000 290,000 The company cost of capital for each project is 10 percent. The company relies on several criteria when evaluating new investment opportunities. The projects are independent. Give me your thoughts on these three projects by Thursday evening, April 27, 2024. Janet was not surprised by the memo, for she had been expecting something like this for some time now. After re-reading the memo, Janet decided on her plan of action and made up the following to do list: A Compute the ARR for each project 6 marks B. Compute the payback period for each project 4 marks c. Compute the Net Present Value (NPV) for each project 6 % marks o . Compute the Internal Rate of Return (IRR) for each project 12 2 marks e. Compute the Profitability Index (PI) for each project 4 marks Prepare Janet's assignment for her meeting with the CFO by completing her to-do list above. Bear in mind that the projects are independent. What is your recommendation to the firm? Justify your response. 4 marks Total 37 marks Presentation, cover page, table of content 4 marks GRAND TOTAL - 100 MARKS