Your Tasks Task 1 Pioneer Steels Ltd. is considering two mutually exclusive projects. Both require an initial cash outlay of 10,000 each and have a life of five years. The company's required rate of return is 10%, and taxes are paid at a 50% rate. The projects will depreciate on a straight-line basis. The net cash flows expected to be generated by the projects are as follows: Year 1 Project 1 4,000 Project 2 6,000 2 4,000 3,000 3 4 4,000 4,000 2,000 5,000 5 4,000 5,000 Required: You are required to calculate and analyse the results of the following, making sure to evaluate the benefits and drawbacks of each method: a) The payback of each project. [10 marks] b) The average rate of return for each project. [10 marks] c) The net present value and profitability index for each project. [10 marks] d) The internal rate of return for each project. [10 marks] [Total Task 1: 40 marks] Your Tasks Task 1 Pioneer Steels Ltd. is considering two mutually exclusive projects. Both require an initial cash outlay of 10,000 each and have a life of five years. The company's required rate of return is 10%, and taxes are paid at a 50% rate. The projects will depreciate on a straight-line basis. The net cash flows expected to be generated by the projects are as follows: Year 1 Project 1 4,000 Project 2 6,000 2 4,000 3,000 3 4 4,000 4,000 2,000 5,000 5 4,000 5,000 Required: You are required to calculate and analyse the results of the following, making sure to evaluate the benefits and drawbacks of each method: a) The payback of each project. [10 marks] b) The average rate of return for each project. [10 marks] c) The net present value and profitability index for each project. [10 marks] d) The internal rate of return for each project. [10 marks] [Total Task 1: 40 marks]