3. The cash flow in respect of two projects is given below. The cost of capital is 8.5%.

Year	Project A	Project B
0	(200)	(300)
1	65	100
2	65	100
3	65	90
4	60	70
5	60	70

Answer the following question using the above information.

I What is the NPV of Project A? Should this project be accepted?

II What is the NPV of Project B? Should this project be accepted?

III What is the Accounting rate of return (ARR) of Project A?

IV What is the Accounting rate of return (ARR) of Project B?

V What is the IRR of Project A? Use graphical and linear interpolation method.

VI) What is the IRR for Project B? Use graphical and linear interpolation method.

VII) What is the discounted payback period for Project A and B?