A company is able to invest in Project A and Project B. The company's required rate of return is 12%. Assuming no taxation and depreciation, you are required to select either Project A or Project B. The cost of either project is R20 000 000-00. (All the figures below are in millions)

Year

0

1

2

3

4

Project A Cash flow

-20

4

4

12

12

Project B Cash flow

-20

10

10

5

5

Appraise the above projects and select the viable project using:

1. Payback Period Method.

2.Net Present Value Method.