A company is considering installing a sprinkler system within its factory in order to reduce losses to material. Two systems are being considered, the first (system A) will cost HK$ 250,000 and the other (system B) HK$ 350,000. Each has a working life of 5 years with no residual value at the end of that time. The projected annual savings in losses to material are: System A System B Year 1 80,000 90,000 Year 2 80,000 100,000 Year 3 70,000 110,000 Year 4 60,000 130,000 Year 5 60,000 130,000 The company expects projects of this type to payback in 3 years, has a cost of capital of 11%. Evaluate each scheme using payback, discounted payback and net present value. In each case advise whether or not the scheme meets the decisionmaking criterion and which scheme is preferred. (30 marks)