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Question 5 The directors of Zhang Limited are considerng three siternative investment proposals, details of which are as to hows. Project Arjun Project Bharat Project Charu E 125.000 Invital investment 100 000 25,000 25,000 Net cash flows yesa 1 Net cash flows year 2 Net cash inflows ycar 3 35 000 35.000 35 000 200.000 B0 000 50,000 80,000 25,000 Nel castillos year 4 35.000 30.000 25,000 25,000 Net cash infras year 5 35 000 30.000 The company depreciates as assets on a straight line bass, assuming a life of live years with no residual value at the end of that time Required: a) Using the above information, for each of the projects Arun and Bharat and Charu, Calculate 1 The Payback Poriad 2 The Accounting Rate of Return The Net Present Value using a decount rate of 154 Note Extract of Present Vauo Tabies are on page 12 b) State with reasons which one of the two investraint projects the directors of Kish Limited should accept d) Discuss why the Net Present Vakte method of investment appraisal is considered to be theoretically superior to the methods that are found in practice