A firm has to choose between three possible projects where there is an initial capital cost (payable now) and forecasts for the net cash inflow at the end of each year for a 5 year period for each project. The details of each project are as follows: Net cash inflow (000) Capital cost 000 Project A Project B Project C Year 1 75 100 50 Project A 300 Year 2 125 200 75 Project B 500 Year 3 125 300 250 Year 4 100 300 300 Project C 300 Year 5 75 150 200 Assume an interest rate of 8%. The formula for Net Present Value is: X (1+r)t Where X is the amount to be adjusted, r is the interest rate as a fraction and t is the time period. a) Calculate the Discount Factors for each of the 5 years based on this interest rate. b) Calculate the total Discounted Cash Inflow for each of the projects across the 5 years. Based on these figures, which project is the most financially attractive? (Hint: you will need to compare the Net Present Value for each project taking into account the initial capital costs and the discounted cash inflow for each project).