Excellence Through Knowledge Limited (ETK) is considering two projects in Western Jamaica. The initial capital outlay for each project is US $82,000 and the cost of capital for the ETK is 8%. The cash flow for each project are detailed in the table below.

Year	Solar Panels US $	Wind Turbines US $
1	31,500	36,300
2	0	22,600
3	32,400	0
4	19,000	13,000
5	21,000	32,000

i.) Calculate each projects Payback period (4 marks)

ii.) Assuming that the projects are mutually exclusive, which project(s) would you recommend for ETK according to the Payback period? Why would you make this recommendation? (2 marks)

iii.) Calculate each projects Net Present Value (NPV). (6 Marks)

iv.) Assuming that the projects are independent, which project(s) would you recommend for ETK according to the NPV? Why would you make this recommendation? (2 Marks)

v.) Calculate each projects Discounted Payback Period. (6 Marks)

b) As a financial analyst at a major firm, you have been asked to make a recommendation about the following mutually exclusive projects.

	Project A	Project B
NPV	$52,000	$55,000
IRR	30%	20%