Question: QUESTION 2 (20 MARKS) EhEh Company is considering two mutually exclusive investment projects, Project A and Project B. The details of each project are as

QUESTION 2 (20 MARKS) EhEh Company is considering two mutually exclusive investment projects, Project A and Project B. The details of each project are as follows: Based on the information, a) Calculate the payback period for each project. (3 marks) b) Which project should be accepted based on Net Present Value (NPV)? Explain your selection and provide a brief rationale for your decision. (10 marks)| c) Determine the Profitability Index for each project. (5 marks) d) If the IRR for Project A and Project B are 18.4% and 15%, respectively, which project should be accepted? Justify your answer. (2 marks)
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