Alice's Restaurant Ltd is considering two mutually exclusive investment projects. The initial investment for each project would be 50,000, all of which would be used to purchase equipment and fixtures for either project. Details of the expected annual net cash flows from each project are shown below. Year 1 2 3 4 5 Project A 5,000 17,000 42,000 30,000 10,000 Project L 20,000 30,000 20,000 20,000 20,000 The assets purchased for each project would be depreciated straight-line over 5 years with no residual value at the end of the project. Required: a) Calculate the payback period for each project (to the nearest year and month), assuming the cash flows arise evenly throughout each year. (4 Marks) b) Calculate the accounting rate of return for each project (to the nearest %), based on average investment. (6 Marks) c) Calculate the net present value for each project (to the nearest ), assuming the cash flows arise at the end of every year, and that the investment is immediate. The restaurant's discount rate is 5%. (10 Marks) d) Advise the directors of the restaurant on which of the two projects is the better investment, and justify your answer with reference to your results from a)-c) above