The directors of Mauvillac Ltd are currently considering investment in a particular project. Two projects, Acrylic...

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The directors of Mauvillac Ltd are currently considering investment in a particular project. Two projects, Acrylic (A) and Pastel (P), with the following cash flows are to be considered. Assume a cost of capital of 8% per annum. Year Project A Cash Flows $ Project P Cash Flows $ 0 -1400 -1100 1 500 400 2 600 400 3 400 400 4 200 400 Residual value-year 4 140 Nil (a) Calculate the following for both projects: 1. Payback period 2. Net Present Value 3. Discounted payback 4. Internal Rate of Return 5. Profitability Index The directors of Mauvillac Ltd are currently considering investment in a particular project. Two projects, Acrylic (A) and Pastel (P), with the following cash flows are to be considered. Assume a cost of capital of 8% per annum. Year Project A Cash Flows $ Project P Cash Flows $ 0 -1400 -1100 1 500 400 2 600 400 3 400 400 4 200 400 Residual value-year 4 140 Nil (a) Calculate the following for both projects: 1. Payback period 2. Net Present Value 3. Discounted payback 4. Internal Rate of Return 5. Profitability Index