1. Bio-Flex Co. is considering three mutually exclusive projects, Project A, Project B, and Project C. The company is interested in a project that will repay the initial investment within 5 years. The cost of capital for the company is 12%. The company has started the analysis of the projects and the results for Project A and Project B are shown in the table that follows. Payback (Years) Project A 5.25 Project B Project C 2.5 Discounted Payaback (Years) 6.3 3.15 Net Present Value $58,086 $16,914 Profitability Index 1.53 1.04 The cash flows for Project C are as follows: Year Cash outflow 0 $ (120,000) 1 30,000 2 40,000 3 45,000 4 55,000 5 70,000 Required: a. Compute the following for Project C, (1) Payback period marks] (ii) Discounted payback period marks] (iii) Net present value marks] (iv) Profitability index marks] [4 [8 [6 [4 b. State which of the three projects should be chosen, and why? [3 marks] Total 25 marks