3 Ajman Investments plc is looking to take on a new investment. The company will evaluate two mutually exclusive projects, whose details are given below. The company's cost of capital is 9%. CLO 3 AED Millions Project A Project B Initial Investment (100) (112) Year 1 30 60 Year 2 32 40 Year 3 40 30 Year 4 40 30 Year 5 65 20 Calculate the Payback period (4 marks) Calculate the Net Present Value (NPV) of both projects (6 marks) Calculate the Internal Rate of Return (IRR) of both projects (6 marks) Critically discuss the merits of each investment appraisal method, then discuss the result of the evaluations you have made of the two projects and advise the