6. i. An engineering company is considering two capital-intensive short-term projects, where both projects are having a lifespan of five years at an investment of 4 200 000. The returns of the two projects are given below. During the period of five years the annual compound interest rate shall be 12%. Project A shall be having a salvage value of 40000) and project B will be having salvage value of 380 000. Using the net present value method assess the suitability of the two projects. Year 1 2 3 4 5 Cash flow of Project A 600 000 1 100 000 1 1 450 000 2 200 000 2 500 000 Cash flow of Project B 2 150 000 1 700 000 1 680 000 850 000 730 000 Discounting factors at compound interest rate of 12%; year 1:0.893. year 2:0797, year 3: 0.712, year 4:0.636, year 5: 0.567 (25 marks)