A choice is to be made between two competing proposals which require an equal investment of rupees 50,000 and expected to generate net cash flows as under : End of year1 End of year 2 End of year 3 End of year 4 End of year 5 End of year 6 Project 1 Rs. 25,000 15,000 10,000 Nil 12,000 6,000 Project 2 Rs. 10,000 12.000 18,000 25,000 8,000 4,000 The cost of capital of the company is 10% Which project proposal should be chosen and why? Evaluate the project proposal under: a) Payback period b) Net present value c) Excess present value index d) ARR