b) Critically evaluate the NI and NOI approach to capital structure. An enterprise is considering two mutually exclusive investment proposals at the 3+2- beginning of 2021. Assuming the required rate of return is 10%, evaluate which investment proposal is better under: (i) Discounted Payback Period (ii) Net Present Value (iii) Internal Rate of Return (iv) Profitability Index. Cost of Investment Life of Projects Scrap Value Estimated Net Income after depreciation and tax : End of 2021 End of 2022 End of 2023 End of 2024 End of 2025 1 Proposal-1 20,000 4 years Nil 600 2,000 3,000 3,500 Proposal-2 28,000 5 years 500 NIL 3,000 3,400 3,500 3,400 'BCS/B.Com./Hons./5th Sem./Commerce/COMCC12/2021 Depreciation is provided under straight line method. The P.V. of Re. 1 to be received at the end of each year at 10% p.a. is given below: Year 1 2 3 4 5 P.V. 0.91 0.83 0.75 0.68 0.62 Turn C