FMP2

New Look Co, is considering three mutually exclusive projects, Project A, Project B and Project C. The company is interested in a project that will repay the initial investment within 5 years. each with a useful life of 5 years. The company has started the analysis of the projects and the results for Project A and Project B are shown in the table below. The cash flows for Project C are as follows: YcarCashflows012345($1,000,000)$125,000$250,000$360,000$400,000$450,000 The cost of capital for the company is 13%. Required: Use the information provided for Project C to assess its feasibility. a. Compute the following for Project C, (i) Payback period marks] (ii) Discounted payback period [7 marks] (iii) Net present value marks] (iv) Profitability index [3 marks] b. State which of the three projects should be chosen, and why? [2 marks]