• At the beginning of 2022, a business enterprise is trying to decide between two potential projects. Assuming a required rate of return of 10% p.a., and Depreciation is provided using the straight line method. Evaluate the investment proposals under: (a) return on investment, (b) payback period, (c) discounted payback period, and (d) profitability index. The forecast details are given below. Proposal A Proposal B Cost of Investment $20,000 28,000 Life 4 years 5 years Scrap Value Nil Nil Net Income (After depreciation and tax) End of 2015 $500 Nil End of 2016 $2,000 $3,400 End of 2017 $3,500 $3,400 End of 2018 $2,500 $3,400 End of 2019 Nil $3,400 calculate Total cash inflows from Proposal A 20 ROI of Proposal B 21 Payback period of Proposal B 22 Profitability index of Proposal A