b) A project manager is considering two mutually exclusive projects for possible investment. The cash flow streams for the two projects are shown Table Q1-2. It is expected to incur Rs.80,000 and Rs.100,000 by the end of fourth year to upgrade the technology for Project A and Project B respectively. Table Q1-2: Cash Flow Streams Cash Flow of Project B (Rs.) Year Cash Flow of Project A (Rs.) 0 - 180,000 + 30,000 2 + 40,000 3 4 5 + 60,000 +65,000 + 75,000 6 + 70,000 7 + 75,000 - 205,000 + 100,000 + 80,000 +70,000 +60,000 + 50,000 + 30,000 +20,000 i. Calculate the followings for Project A and Project B (use a discounting rate of 10 %): a. Payback Period b. Net present value (NPV) c. Recommend the better project with justifications. (04 marks) (06 marks) (02 marks) ii. Advise the businessman whether he should invest in the better project, if maximum rate of return acceptable to the businessman as 14%. (03 marks)