Question 4: (a) Describe the thumb that should be kept in mind when deciding which cashflows to include in investment analysis. Use examples to illustrate your answer. (15 Marks) (b) Choose the column based on the first letter of your first name and complete the question 2(a) using these figures. Then, choose the column based on the first letter of your surname and complete the question 4(b) using these figures. e.g. Name: Ben Lynch, choose column T1.1 form table 1 and column T2.3 from table 2. T1.1 T1.2 T1.3 T1.4 T1.5 Table 1 First name starts with: A,B, C, D, E F, G, H, I, J K, L, M, N, O P, Q, R, S,T U, V, W, X, Y, Z (a) 3% 5% 12% 9% 2% T2.1 T2.2 T2.3 T2.4 T2.5 Table 2 Surname starts with: (b) (c) A,B,C,D,E $ 100,000 $ 180,000 F, G, H, I, $ 200,000 $100,000 K, L, M, N, O $ 60,000 $ 60,000 P, Q, R, S,T $ 80,000 $ 30,000 JU, V, W, X, Y, Z $ 150,000 $ 50,000 A Firm is considering two investments that are expected to have cash flows that occur annually as detailed below. If you assume a discount rate of_(a)__, which project is worth pursuing and why? Base your decision on a calculation of the NPV and Profitability Index for each project. (20 Marks) Project B Initial Investment Year 1 Year 2 Year 3 Year 4 Project A (b) $ 50,000 $ 10,000 $ 20,000 $ 40,000 $ 40,000 $ 20,000 $ 10,000 $ 50,000