Allianz Inc. is considering whether to purchase the Basic or Premium version of the ARS machine, a key piece of equipment that is expected to improve efficiency of daily operations. You have been tasked with evaluating the quantitative aspects of the projects, which are independent The projected cash flows of both projects are as follows: Years 0 1 2 3 4 Project Basic AR5 Premium AR5 (5,000,000) (7,500,000) 1,000,000 2,500,000 1,500,000 2,500,000 2,000,000 2,500,000 2,250,000 2,500,000 The company has a required rate of return of 12%. The following PV factors are provided: Year 1 2 3 4 PV Factor (12%) 0.8929 0.7972 0.7118 0.6355 Required: (a) Evaluate the projects using each of the following criteria, stating which project(s) Allianz Inc. should choose under each criteria and why i Payback TL Discounted Payback III. Net Present Value iv. Profitability Index (3 Marks) (6 Marks) (3 Marks) (3 Marks) (b) Companies may utilize any of the criteria above to evaluate projects Identify the criteria that is considered the most favourable, outlining any three (3) advantages of this criteria