5 years The company you work for, Proctor Analytical Solutions, is investigating the possibility of investing in a new advanced computing system to optimise their business analytics. As the finance manager, you have sourced the following information for two investments opportunities: Project A Project B CAPEX / Initial Outlay $400,000 $250,000 Project life 5 years Operating Expense $75,000 $100,000 Revenue (per year) $300,000 $400,000 Variable costs $100,000 $200,000 Investment in Net Working Capital (Year 0) $50,000 $100,000 The company's tax rate is 30% and employs a straight-line depreciation method. Both computing systems will not have any value at the end of their life. The company has a required rate of return of 12% per annum. a) Determine the Free Cash Flows (FCF's) for each year to the firm, for both projects. (7 marks) b) Based on your calculated FCF's, calculate the Net Present Value of the project and identify which of the projects you would recommend. (3 marks) a) Identify and discuss the major disadvantage of the NPV criterion for choosing projects. Within your discussion provide a brief explanation as to how the disadvantage may affect the valuation of the project. (3 marks) c) Why is it not appropriate to use a company's current cost of capital when investing in a project with a different risk profile to the company