$($ii$)$ For Project C and D$,$ Mr Tam is interested in using Net Present Value. The information for both projects are as follows:

Table $1$: Projected Cash Flow $($SG$$)$ for Project C and D

Project C Project D

Year Inflow Outflow Year Inflow Outflow

$0$ $$150,0000$ $$100,000$

$1$ $$50,0001$ $$60,000$

$2$ $$40,0002$ $$50,000$

$3$ $$40,0003$ $$60,000$

Mr Tam indicates that the projects must earn a minimum of $14\%$ annually and must consider an inflation rate of $2\%.$

Assemble a Net Present Value analysis for each project

Discuss which project shall be implemented using this method and give one $(1)$

reason if Mr Tam should consider this project or not.