Capital budgeting practice (CAPEX) A company is introducing a product that can sell at: 10 DOP per unit, it is estimated that the volume of sales to be made is 200,000 units the first year and for the following years an increase of 5% compared to the sales of the previous year, this during the useful life of the project, which is 4 years. The company has two investment alternatives. 1st. Project A, and 2nd. Project B. The cost distribution is as follows: Variable costs from A: 400,000 to B: 200,000. The fixed costs for A: are 725,000 while for B: they are 850,000. Initial investment in project "A" is: 800,000 while for "B" it is: 1,400,000. Additional info: The investment will have a capital cost of 15% and the ISR is 27%. the depreciation method used is the straight line according to the categories in force in the DGII. It is required: a) Develop forecasted income statement with the data provided Then determine: b) Recovery Period or Pay Back c) Productivity Index d) Net Present Value (NPV) e) Develop capital investment budget (CAPEX) and select the most feasible project according to the indicators B Summary Initial Investment Time (in years) N Cost of capital Taxes A 800,000.00 4.00 15% 40% 1,400,000.00 4.00 15% 40%