There are 2 projects (Plan A and Plan B) whereas Plan A related to a project which involves collaboration of both internal and external partners from local and overseas due to adaptation of latest technology and designs. Plan B is mainly localized product line with special features incorporating in-house modifications and expertise. You are expected to make a decision between plan A or plan B

Based on the above information, answer the following questions:

a) Calculate the answers of the following - show the calculation/step

(i) NPV cost of Plan A and Plan B

(ii) NPV revenue of Plan A and Plan B

(iii)NPV net profit of Plan A and Plan B

(iv)ROI for Plan A and Plan B

b) Decide which one is the better option according to the above financial analysis and justify your decision with 3 key reasons.

c) If the NPV, ROI, and the Payback Period are the same for the two plans, please decide which plan is the better option and justify your decision (3 key reasons)

d) Any concern or hidden risk you can identify in these 2 projects which can have significant impact to your decision?

End of Year 2 End of Year 3 $0 $0 Project A Year End of Year 1 Costs $40,000 Revenue $0 $10,000 Discount Rate 5% Table 1: Cost and Revenue for Plan A. $10,000 $40,000 End of Year 3 Project B Year End of Year 1 Costs $10,000 $25,000 Revenue $30,000 Discount Rate 10% Table 2: Cost and Revenue for Plan B. End of Year 2 $25,000 $50,000 $10,000