Problem 1 TOTAL: 30 MARKS BioTech Industries is considering two mutually exclusive projects. The firm which has a 15% cost of capital, has estimated its cash flows as shown in the table below. PV Factor Years B Years 15% 0 -350000 -50000 1 45000 24000 0.8696 65000 22000 0.7561 3 65000 19500 3 0.6575 4 440000 14600 4 0.5718 1 N WN a) Calculate each project's discounted payback period. b) Calculate the Net Present Value (NPV) for each project. c) Indicate which project should be chosen and why? d) Calculate the Internal Rate of Return (IRR) for Project B given the IRR range is between 20% -26%. e) Based on all the above findings, recommend the best project. Explain