booming ltd is a growing company looking for expension. it is evaluating project A and project B

Question (10 marks Booming Ltd is a growing company looking for expansion It is evaluating Project and Project B It can accept esither project A or project B but not both Each project wil ast 5 years and ha no salvage value at the end. The company's required rate of reursfor mestrent projects is 10% The company requires a manmum payback peod of S year for the projects Other information relevant to Project A and Project B Protect o provided below A Project 8 280,000 180.000$ ost Future Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 $93.600 64,800 81,600 72,000 64,800 84 800 $86 400 123,600 $166,800 187 200 quired ) Caiciat, the pread peod ofeach pro ed by simple payback metod (4 marks) b) Calouale net presenl value (NPV) for both projects (4 marks) Which prjet should they acce marks)