Task 1: Project Appraisal [40 marks] Jackets Ltd is considering expanding its highly successful denim jackets business. The initial investment costs and net annual cash flows for two projects considered by Jackets Ltd manufactures denim jackets are shown in the table below; Year 0 1 2 3 4 A (100,000) 20,000 25,000 35,000 50,000 B (150,000) 100,000 40,500 20,000 10,000 The company's expected return on capital is 8%. For both projects, calculate the following; 1. Calculate the ARR and discounted payback period of these two projects. [10 marks] 2. Calculate the NPV of these two projects. [10 marks] 3. Calculate Profitability index for these two projects. [10 marks] 4. Considering the above results, explain critically which project do you choose? [10 marks]