Alpha Ltd is considering two mutually exclusive projects in terms of their business expansion strategy. The table below shows the initial investments needed and the net cash inflows for the two projects.

	Project A	Project B
Initial Investment	100,000	100,000
Year	Cash inflow	Cash inflow
1	10,000	25,000
2	25,000	50,000
3	50,000	47,000
4	50,000	32,000
5	30,000	55,000

a) Knowing that the cost of capital is 10%, You are required to assess the two projects according to the following techniques

• Payback period (3 marks)
• NPV (5 marks)

(You should explain your selection and show solution steps).

b) Assuming that after Calculation of IRR for both projects they were ranked different from NPV, (that is A is better than B) which project should be selected in this case? (1 mark)

c) If the above two projects are independent projects which of them should be selected? (Explain your answer) (1 mark)

I need within 10 minutes