Question 3 (15 marks) X construction is considering two projects to develop. The estimated net cash flow from each project is as follows: Year Project X (3) Project Y (5) 1 110,000 75,000 2 65,000 150,000 3 100,000 60,000 115,000 55,000 5 35,000 60,000 Total 425,000 400,000 Each project requires an investment of S 200,000. 4 The cost of capital is 10% Require to a) Calculate Net Present Value, Payback period, ARR and Profitability Index. b) Which Project is to be recommended to develop based on NPV, Profitability Index, Payback period and ARR? Suggest