2. Royce Steel Manufacturing is in the process of choosing the better of two equal-risk, mutually exclusive capital expenditure projects-A and B. The relevant cash flows for each project are shown in the following table. The firm's weighted average cost of capital is 8%. Year 0 1 Expected Net Cash Flows project A project B $502,000 $502,000 125,500 250,000 125,500 100,000 125,500 180,000 125,500 100,000 2 3 4 [4+8=12] a) Calculate the Payback Period for both the projects. b) Calculate the NPV and the Profitability Index for each of the projects. Which project should be selected and explain why