12. The Susan Co. is contemplating either of two mutually exclusive projects. The data with respect to each are given below. The initial investment for both is equal to their depreciable value. Project A (K) 100,000 Project B (K) 140,000 Initial Investment Year Profits after taxes 1 10,000 25,000 15,000 25,000 20,000 25,000 25,000 25,000 5 35,000 25,000 A. Calculate the 'internal rate of return' and 'benefit-cost ratio' for each project. B. Evaluate the acceptability of each project on the basis of above mentioned two techniques. C. Select the best project, using NPV and benefit-cost ratios and comment on the resulting rankings. D. Assume that the Susan Co. has an 11% cost of capital (10 marke) 2 3 4 12. The Susan Co. is contemplating either of two mutually exclusive projects. The data with respect to each are given below. The initial investment for both is equal to their depreciable value. Project A (K) 100,000 Project B (K) 140,000 Initial Investment Year Profits after taxes 1 10,000 25,000 15,000 25,000 20,000 25,000 25,000 25,000 5 35,000 25,000 A. Calculate the 'internal rate of return' and 'benefit-cost ratio' for each project. B. Evaluate the acceptability of each project on the basis of above mentioned two techniques. C. Select the best project, using NPV and benefit-cost ratios and comment on the resulting rankings. D. Assume that the Susan Co. has an 11% cost of capital (10 marke) 2 3 4