AT&T has the following two mutually exclusive projects The Required rate of return for Project A is 36% and Project B is 40%

Year Project A Project B

0 Rs. -200,000 Rs. -250,000

1 85,000 115,000

2` 80,000 160,000

3 100,000 125,000

4 120,000 110,000

5 90,000 80,000

You are required to analyze the project individually and comparatively on the following basis and suggest the management which project is useful?

a) Discounted Pay back

b) NPV

c) IRR

d) Profitability index

e) In perspective of capital budgeting which plant will you prefer? And why? Give reasons.