Two projects are listed below. As an analyst within the government, your job is to identify metrics for the projects investment decision criteria. Two such projects have the following criteria: Project 1 Project 2 Initial cost $2,000,000 $3,500,000 Expected annual cash flow to the firm $600,000 $700,000 Life (years) 5 8 These projects have a cost of capital of 8% p.a. Note: The cash flows to the firm are after tax and depreciation. a) Calculate for both projects, the: i. ii. Internal Rate of Return (IRR) Net Present Value (NPV) Profitability Index (PI) and; Payback Period for project 1 and 2. iii. iv. (8 marks) b) Can NPV be used to rank the projects? If not, why not? Note: there is no need for any calculations. (2 marks) c) What are some of the reasons that cause the Net Present Value and Internal Rate of Returns to give different recommendations on the acceptance of a project