Problem 4 (25 marks): A company has to make a choice between two projects namely P&O. The initial capital outlay of two projects are $465,000 and $598,000 respectively for P and O. There will be no scrap value at the end of the life of both the projects. The opportunity cost of capital of the company is 13%. The annual income is as under: I Year 1 2 3 4 5 6 8 9 10 11 Project P 15.000 39,000 37,500 52.000 61.000 111,000 73,500 88,200 101.700 126,100 129,800 133,330 194,850 188,260 179,230 Project 0 19.050 49.530 47,625 66,040 71,980 136,530 90,405 108,486 125.091 158,886 163,548 167.996 235,769 227,795 216,868 12 13 14 15 Analyze which project is better for the company