(a) Mergers and acquisitions, or M&A for short, involves the process of combining two companies into one. The goal of combining two or more businesses is to try and achieve synergy where the whole (new company) is greater than the sum of its parts (the former two separate entities). M&A is a growth strategy which corporations often use to quickly increase their size, service area, talent pool, customer base, and resources in one fell swoop. However, there are some potential drawbacks of undertaking this strategy. Discuss. (10 marks) (b) Neil Corporation is attempting to choose the better of two mutually exclusive projects for expanding the firm's warehouse capacity. The relevant cash flows for the projects are shown in the following table. The firm's cost of capital is 15 percent. Project A Project B Initial investment RM400,000 RM400,000 Year 1 RM130,000 RM70,000 2 RM130,000 RM100,000 3 RM130,000 RM130,000 RM130,000 RM160,000 RM130,000 RM190,000 4 Expected Cash Inflow 5 Calculate the following for both projects. i. Payback Period (4 marks) ii. Net Present Value (6 marks) iii. Profitability Index (3 marks) iv. Recommend the best project that Neil Corporation should consider and justify your answer. (2 marks) 25 marks