Section C: Scenario Question (40 marks in total) Attempt ALL questions in this section. Note that marks are to be deducted, if the necessary steps are not clearly shown As a project manager of an engineering firm, you need to decide which new products should be developed. Your project team has decided the following criteria, and scores in the tables below. Table C.1 and C.2.: Product A and Product B: investment and revenue cash flow forecast ($ million). The cash flow contributions are realized at the end of each year. Both products will have the similar product cycle ending by the end of the 3rd year. Table C.1. Product A Year (end of year) Cost Investment (S million Revenue ($ million) Discount Rate = 10% 0 1 2000 1500 0 0 2 1000 0 3 0 6000 Table C.2. Product B Year (end of year) CostInvestment (S million) Revenue (S million) 3 Discount Rate = 15% 0 1 1000 1500 0 2000 2 1500 3000 1000 4000 a) Calculate the NPV and ROI of Products A and B based on the NPV. ROI and Payback. Shows your steps in obtaining the ROI and NPV and Payback Period. All your answers to 2 significant figures. (2 decimal points) (20 marks) b) Determine which product should be chosen in a) (2 marks) and state 4 (FOUR) key reasons (8 marks) to support your decision. c) Incorporate other criteria (Table C.3.) into evaluation with additional information: - Product A will help promote the reputation of the company better than Product B. - Product A will in long term saving more cost for the whole company compare to Product B. Use ranking approach (Top Rank = 2, Low Rank =1)., which product A or B would you choose? (2 marks) and show your calculation and work to justify your answer. (8 marks) Table C.3. - Criteria Product A Product B Weighting 15% 20% Cost Saving NPV ROI Payback Period Reputation Score 30% 20% 15% 100%