QUESTION FOUR [20] 3 The following 2 mutually exclusive projects (Project A and Project B) are available: Yearls Cash Flows (A) Cash Flows (B) 0 -200 000 -20 000 1 18 000 10 000 2 28 000 9 000 3 28 000 10 000 4 300 000 8 000 NB: 1. The Company requires a rate of return of 14% on its investment. 2. Assume profits equal cash flows Required: 4.1. Using the average rate of return (ARR), determine which project is more viable. (4) 4.2. Determine which project is more lucrative if the NPV rule is applied. (11) 4.3. Calculate the payback period for both projects