Blue Lid has provided the following figures for two investment projects, only one of which may be chosen. If the project is accepted, it will be financed totally by owner's equity. Estimated resale value at end of year 4: 40,000 4.001 Profit is calculated after deducting straight line depreciation. The business has a cost of capital of 10%. NOTE THAT: RESALE VALUE = RESIDUAL VALUE Required a) Calculate the payback period, discounted payback period, accounting rate of return, net present value, profitability index, the internal rate of return, and Modified IRR for each project, and provide brief recommendations as to what project needs to be chosen based on the following: i. The Payback Period and Discounted Payback period. ii. The Accounting Rate of Return/Return on Capital Employed. iii. The Net Present Value. iv. The Profitability Index v. The Internal Rate of Return (to two decimal places) vi. Modified IRR, assuming that the reinvestment rate is 7% and the finance rate is 10%