BesterNan, a private security company is considering two mutually exclusive projects, each with an initial investment of R150,000,000. Project A is a tender for the provision of security services at a government prison in the Northern Cape, while Project B is a contract for the provision of security services at a private hospital in the Free State. The companys directors have set a maximum 3- year payback requirement, as well as a 9% cost of capital. The cash inflows associated with the two projects are shown below Year Cashflows Project A Cashflows Project B 1 R45,000,000 R75,000,000 2 R45,000,000 R60,000,000 3 R45,000,000 R30,000,000 4 R45,000,000 R30,000,000 5 R45,000,000 R30,000,000 6 R45,000,000 R30,000,000 a) Calculate the payback period for each project. (2) b) Calculate the NPV for each project at 0%. (4) c) Calculate the NPV for each project at 9%. (6) d) Derive the IRR of each project. (8) e) Rank the projects by each of the techniques used. Which of the two projects should be pursued? Justify your recommendation. (6) f) Suppose the cost of capital rises to 12%, calculate the new NPV and make a recommendation as to which project should be considered