A sports stadium managing authority is considering expansion of the stadium capacity. The following are the various project options to achieve the above mentioned objective. Project A: Include a new stand Project B: Renovate an old stand Project C: Build a top box for special guests/attendees Project D: Create a flexi facility The cash flow details (projected outflows and inflows) are provided in the table below: 2 Cash Flows (in Rs.) Project t=0 t=1 t=2 t=3 A -10000 +10000 B -10000 +17500 +7500 C -10000 +12000 +4000 +12000 D -10000 +10000 +3000 +13000 (a.) Rank the projects according to each of the following methods: (i.) Payback, (ii.) Discounted payback, (iii.) IRR and (iv.) NPV; assuming discount rate of 10%. (b.) Assuming the projects are independent of each other, which one(s) should be accepted? If the projects are mutually exclusive (i.e. only one of them can be chosen), which project is the best? Assume that the scale of the projects cannot be changed. Explain your choices.