Using the same information as in question 5, answer the following questions: Required: Evaluate both these mutually exclusive proposals using: I 1) Profitability index 2) Internal rate of return (IRR) Q5 (10 marks) Global company is considering expanding its international presence. The company believes that it has great potential for international sales. Recently, 20% of the Global Company's sales were in foreign markets. The goal is to expand the foreign sales to 30%. In order to accomplish this goal, the company needs to invest heavily. After considering tax, marketing, labour and political issues the company has decided to invest in India and Dubai. The following estimates have been provided: I india Dubai $1,400,000 20 years Initial investment Estimated useful life Annual revenues (accrual) Annual expenses (accrural) Annual cash inflows Annual cash outflows Estimated salvage value Discount rate $2,500,000 20 years $500,000 $200,000 $550,000 $222,250 $500,000 9% $380,000 $180,000 $430,000 $206,350 $0.00 9% India Dubai $2,500,000 $1,400,000 20 years 20 years Initial investment Estimated useful life Annual revenues (accrual) Annual expenses (accrural) Annual cash inflows Annual cash outflows Estimated salvage value Discount rate $500,000 $200,000 $550,000 $222,250 $500,000 $380,000 $180,000 $430,000 $206,350 $0.00 9% 9% Required: Evaluate both these mutually exclusive proposals using: 1) The cash payback period 2) The net present value (NPV)