5. Lifecare Ltd has been approached by the government to build its next Health Care City Project. There are two project proposals in question but only one can be accepted. The following project requires immediate cash payments for Fixed Assets that has life of 5 years with no residual value left Projecti's calculations are as follows: ARR= 24% Payback Period= 3 years and 4 months NPV=+19445 Project 2 ($) Year 0 Cash Outflow -120,000 1 30,000 2 3 Net Cash Inflow Net Cash Inflow Net Cash Inflow Net Cash Inflow Net Cash Inflow 35,000 40,000 50,000 50,000 4 5 Calculate the Accounting Rate of Return, Pay Back Period and Net Present Value Analysis the for the project for Project 2. (15 Marks) Which Project should be accepted and Why? (5 Marks) The cost of Capital is 12% Discount Factor Values: Year 1 : 0.893 Year 2 : 0.797 Year 3 : 0.712 Year 4 : 0.636 Year 5 : 0.567