Question: Messer's Ltd is considering two potential projects that are Turbine and Wind flow. The forecasted after-tax cash flows are as below: Year Year Turbine (RO)4

 Messer's Ltd is considering two potential projects that are Turbine and

Messer's Ltd is considering two potential projects that are Turbine and Wind flow. The forecasted after-tax cash flows are as below: Year Year Turbine (RO)4 Wind Flow (RO) 0 (2,000,000) (2,000,000) 1 950,000 700,000 2 800,000 700,000 3 400,000 700,000 4 200,000 700,000 i) Calculate Payback period for Project Turbine and Project Wind Flow ii) Calculate Net present value for Project Turbine and Project Wind Flow. Use a discount rate of 6%. iii) Which project should be chosen based on NPV and why. iv) Calculate Internal Rate of Return for Project Wind Flow only

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