Hydrangea Limited is looking into some potential investment projects. Relevant information is summarised below: Project Cost of Investment Garden $550,000 Innovia $560,000 Estimated net cash flows Year 1 2 3 $ 80,000 110,000 150,000 190,000 220,000 $ 100,000 120,000 180,000 210,000 270,000 4 5 The required rate of retum is 8%. [Refer to Appendix A for discount factors] Year Cash Flow Discount Factor at (to fill the discount factor) Present Value of Cash Flow $ Note: Copy the above table and complete the calculations in the answer booklet. Required: a. Calculate the Net Present Value (NPV) of both projects. (Note: round off the values to the nearest dollar) b. Evaluate and advise the management which one of the projects should be undertaken, if any. c. Project Orchid has a payback of 4.75 years and Project Violet has a payback period of 5.5 years. Required: Advise Hydrangea Limited, which project should be selected undertaken and why