Consider the following information about four different projects. Each requires an initial outlay of Rs1,000,000 but the firm only has funds to undertake one project. The firm has traditionally used a discount rate of 10% to evaluate all its projects. The information regarding four projects are as follows: Cash flows Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 10,000 Performance indicators: Project "Attract' NPV RS 000 ROI (or IRR) % period of years required for the project's future cash flows to Payback number Project "Attract Rs'000 recover its investment (years) 393.92 11.3% 14.20 Project 'Boring' Rs'000 160 200 350 395 432 440 442 444 446 448 450 451 451 452 (2,000) Project Boring 228.22 12.3% 6.05 Project 'Cool' Rs'000 1,200 900 300 90 70 Project 'Cool' 165.04 15.3 1.89 Project 'Dear' Rs'000 (350) (60) 60 350 700 1,200 2,250 Project 'Dear' 182.98 11.4% 6.04 Required: (a) Explain with supporting reasons whether a blanket discount rate of 10% used to evaluate all four projects is a sound financial management practice. (10 marks) (b) Explain, with supporting reasons (no computations are required), which project would have the greatest shareholder value added? (10 marks)