a) Soofi Inc. has the following two projects available. i. If the company imposes a payback cutoff of three years for its investment projects, indicate which project(s) Soofi Inc. should accept if both projects are independent (6 marks) ii. Calculate the NPV of the projects if the required rate of return is 8%. Indicate which project(s) Soof Inc should accept if both projects are mutually exclusive. (9 marks) Year Cashflow ($) A Cashflow ($) B 0 -60,000 -90,000 1 17,000 19,000 2 23,000 24,000 3 19,000 35,000 4 100,000 55,000 b) You intend to open a new shop at a start-up cost of RM600,000. The initial investment will be depreciated in a straight-line method to zero over the 15-year life of the project compute the average accounting rate of return. (5 marks) Years Net Income (RM) 1-5 124,000 (per year) 6-10 108,000 (per year) 11-15 78,000 (per year)