Your company is considering funding two projects. Project A will cost the company $720,000, and Project B will cost $600,000. For Project A, they expect an estimated cash flow of $125,000 peryear. For Project B, they expect an estimated cash flow of $180,000 per year. Senior Management has stated that the project that has been chosen must yield a 20% rate of return. The project life cannot exceed five years. The inflation rate is expected to be 2% Please answer the questions below: 1. (2 points) What is the payback period for Project A and Project B? 2. (2 points) What is the average rate of return for each project? 3. (2 points) What project would you select based on the payback period and why? 4. (5 points) What is the NPV for each project? 5. (2 points) Compute the profitability index for each project 6. (2 points) What project would you select based on the latest information and why? 7. (5 points) For Project A and Project B, what would have to be the minimum discount rate to ensure our company would not lose any money based on the requirements set by senior leadership? (You can use Excel for this problem) 8. (5 points) Write a summary of what you would tell the Senior managers about the two options. What would you advise them and why