Alice Werd is a new project analyst; he is working on capital budgeting analysis of two mutually exclusive projects. The followings are the cash flow forecasts for both the projects years Project A Expected Cash flows Project B Expected Cash flows 0 (1000,000) ($900,000) 1 50000 650,000 2 200,000 650,000 3 600,000 550,000 4 1000,000 300,000 5 1500,000 100,000 The following metrics presents the key information based on capital budgeting indicators. For purposes of analysis, he plans to use a required rate of return of 20% for both projects. Ideally, he would prefer that the project he chooses to have a payback period of less than 3.5 years and a discounted payback period of less than 4 years Metrics Project a Project b Payback period (in years) 3.15 1.38 Discounted payback period (in years) 3.98 Net Present Value (NPV) $596,206 Internal Rate of Return (IRR) 35.93% Profitability Index Accounting Rate of Return (ARR) 1.25 1.58 i.Please calculate the missing values in the table and help Mr. Werd to decide which project to select and why? ii.Explain the different stock valuation methods? iii.What are the advantages of dividend discount model?