Billy Company is considering two projects. Relevant data follows: Project 1 Project 2 Cost of machine P100,000 P125,000 Estimated life 3 years 3 years Annual cash income (before taxes) End of year 1 P60,000 P80,000 2 60,000 70,000 3 60,000 60,000 Salvage value 10,000 20,000 Cost of capital, 12% Income taxes, 20% Required: Determine the following: a. Compute the EPV (excess present value) for each project. b. Compute the EPV index for each project c. Assume that the projects are mutually exclusive, which projects should be selected? Why? d. Assume that the projects are independent of one another, which should be selected? Why? e. For each project compute the discounted payback.