4. Chill Resorts Inc. is a large company that is considering three long-term capital investments. Each investment has a useful life of five (5) years. Consider the profit for the following three alternative investment options: Discount Project A Project B Project C Factor Capital Investment $210.000 $220,000 $215,000 Annual Profit: Year 1 0.86957 $17.000 $20.000 $28.000 Year 2 0.75614 17.000 19.000 21,000 Year 3 0.65752 17.000 18,000 19,000 Year 4 0.57175 17.000 17,000 17,000 Year 5 0.49718 17,000 16.000 14,000 Total $85,000 $90,000 $99,000 The discount factor for a five-year annuity at 15% is 3.35216. Depreciation is calculated using the straight-line method with no residual/salvage value. The company's cost of capital is 15% Required: 1. Calculate the following for each option: a Payback period (6 marks) b. Average accounting rate of retum (6 marks) c. Net present value (6 marks) 2. Explain which project Chill Resorts Inc. should accept. (2 marks) FMGT 2152 - Summer 2021