SeyLamb Footwear is considering the purchase of a new leather stitching machine to replace an existing machine. Assumed a required rate of return of 10% and a 50% tax rate. The company has a policy of charging depreciation on straight line method. No capital gain taxes are assumed. The following information relates to the project. Project KuK Project KaK Initial Cash outlay 100,000 140,000 Salvage value Nil 20,000 Earnings before depreciation and taxes: Year 1 25,000 40,000 2 25,000 40,000 3 25,000 50,000 4 25,000 60,000 5 25,000 20,000 Required For each project calculate: (i) Pay-back Period (ii) Internal Rate of Return (iii)Profitability Inde