Question-2 The following information about two mutually exclusive projects M and P is relevant for requirements 2(a) to 2(c) only. Max-V Company is considering investing in Project M, which will require an outlay of $600 million. The project will have a four-year life and at the end of that time, the equipment will be scrapped. The project is expected to generate the following annual cash flows: Year-1 Year-2 Year-3 Year-4 Cash inflows $460m $390m $380m $320m Cash outflows $180m $150m $150m $130m The company has a required rate of return of 10.65%. The company normally has two-year payback criteria. The alternative project-P offers the following net cash flows: Year-0 ($600m); Year-1 $169m; Year-2 $212m; Year-3 $298m and Year-4 $336m. (a) Calculate the (i) NPV, (ii) IRR, (iii) PVI, (iv) Payback period, (v) Discounted payback period for projects M and P. (b) Calculate the crossover rate (between projects M and P) based on the cash flow data mentioned above. Show the range of required rates for which either project-M or project-P would be preferred. (c) Based on your findings in requirements a and b above, what would be the decision of selection of project (when the required rate of return is 10.65 percent)?