Question: Vistech is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have

Vistech is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have the cash flows as shown in the table below. Vistech uses a required rate of return of 10% and an inflation rate of 4%. (i) Compute the payback in years and the net present value for both projects and offer advice as to the best course of action. ( 8 marks) (ii) Briefly state two (2) shortcomings of simple payback period. ( 2 marks)
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