Q1. Inatech is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have the cash flows as shown and Inatech uses a required rate of return of 10% and an inflation rate of 2%. Compute the payback in years and the net present value for both projects and offer advice as to the best course of action.

Year	A	B
0	-$100,000	-$400,000
1	$20,000	$75,000
2	$50,000	$100,000
3	$50,000	$150,000
4	$25,000	$150,000
5	$500,000	$750,000

PLEASE DO WORKING BY HAND/ DO NOT USE EXCEL TO CALCULATE!