Questions 2 (20 marks) 1. Two mutually exclusive projects, C and D, will have an initial cost of $20,000 each and are expected to yield the following after-tax cash ows. Year C D 1 $4,000 $8000 2 $6,000 $6,000 3 $5,000 $6,000 4 $4,000 $1,000 5 $6,000 $3,000 6 $2,000 $4,000 7 $2,000 8 $2,000 (a) Basedonthepaybacktechnique, ifthemaximumacceptable Payback Periodis 4 years, would you accept Project C, Project D, neitherorboth (6 marks) (b) Based on the NPV technique, if the required rate of return is 12%, would you accept Project C, Project D, neither or both? (7 marks) (c) Based on the EAA technique, if the required rate of return is 12%, would you accept Project C, Project D, neither or both? (7 marks)