1. Assume that you are a new Head of the project management department at LG in South Korea, and the CEO of LG is considering introducing a new monitor to the UK market for 3 years The Product Development Team has provided you with the ideas of two newly designed monitors, Yun and Yan, but the cash flows generated by the two new monitors will be very different due to the difference in the target customers. In order to produce the two new monitors, LG will need to put down an investment of 12 million for each in the current year. Your team has already estimated the cash flows. The report shows that Yun is expected to generate 10 million, 2 million and 2.5 million for 2017, 2018 and 2019 respectively, while Yan is expected to generate 2 million, 2 million and 12 million for the same years. The discount rate is 7.5% per year (a) Calculate the payback period of each monitor [5 marks] 10 marks] [10 marks] (b) Calculate the NPV of each monitor (c) Calculate the IRR of each monitor (d) On the basis of your answer to (a), (b) and (c) above which project should be chosen? Carefully explain your answer 10 marks] (e) Critically discuss the advantages and disadvantages of Payback Period and IRR and how the disadvantages can be overcome [15 marks]