1 "Teck Engineering normally expects a minimum rate of return of 12% on investments. Two projects are available but only one can be chosen. Project A requires an immediate investment of $4,000,000. In return revenue payments of $4,000,000 will be received after 4 years and $9,000,000 after nine years. Project B requires an investment of .,$4,000,000 now and another $2,000,000 at the start of the third year. In return revenue payments will be received in the amount of $1,500,000 per year for nine years." A Calculate the NPV of both projects. (6 Marks) B Calculate the ROI of both projects. (4 Marks) C Determine the payback period of both projects. (2 Marks) D Which project would you choose? Why? (3 Marks) 2 Games Inc. has developed a new electronic game and compiled the following product information. Year Production Costs Promotion Costs Sales Revenue 1 $48,000.00 $0.00 $0.00 2 $48,000.00 $64,000.00 $64,000.00 3 $48,000.00 $96,000.00 $256,000.00 4 $48,000.00 $32,000.00 $128,000.00 5 $48,000.00 $0.00 $32,000.00 Company requires a return of 16% on investments A Calculate the NPV of the project. (8 Marks) B Calculate the ROI of the project. (2 Marks) C Determine the payback period of the project.(2 Marks) D Which you go ahead with the project? Why/why not? (3 Marks)