Question $2(40$ marks$)$

Cranbrook Company is considering two mutually exclusive projects with the following cash flows. Ignore income tax.

Required

A$.$ What is the payback period for each of these projects? Which project will the company choose if it applies the payback period decision rule? $(12$ marks$)$

B$.$ The required rate of return is $\backslash (15\backslash \%\backslash ).$ What is the NPV for each of these projects? Which project will the company choose if it applies the NPV decision rule? $(12$ marks$)$

C$.$ What is the IRR for each of these projects? Using the IRR decision rule, which project should the company accept? $(12$ marks$)$

D$.$ Which project should you choose? Why? $(4$ marks$)$