Question: (a) If management requires projects to have a 3-year payback, would it accept either of the following two independent projects? Please explain thoroughly the calculations

(a) If management requires projects to have a 3-year payback, would it accept either of the following two independent projects? Please explain thoroughly the calculations of payback period, by showing precise years of payback. Please show formulas in your calculations. Please do not use excel.

(b) What is the NPV of project B assuming the discount rate is 14%. Please explain thoroughly your calculations. Please show formulas. Please do not use excel.

(c) Sketch the NPV profile for project B. Also indicate the point when the discount rate is 37.01%. Please show thoroughly your calculations. Please explain how to draft a sketch in excel.

Year	Cash flow (A)	Cash flow (B)
0	-55,000	-95,000
1	19,000	18,000
2	19,000	18,000
3	19,000	18,000
4	19,000	230,013

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