(CLO3) Dubai Islamic Bank is in the process of choosing the better of two equal-risk, mutually exclusive projects capital expenditure projects-A and B. The relevant cash flows for each project are shown in the following table. The firm's cost of capital is 10%. Project A Project B Initial investment $26,500 $25,000 1 $10,000 $10,000 2 $10,000 $10,000 3 $10,000 $9,000 4 $10,000 $8,000 Required: a. Calculate each project's payback period? b. Calculate the net present value (NPV) for each project. c. Calculate Profitability Index (PI) for each project. d. Summarize the preferences dictated by each measure (Payback period, NPV, PI), and indicate which project you would recommend. Explain why? 4 e. Based on your understanding capital budgeting chapter, what are the two important measures that the payback period gives and are absent from the other capital budgeting decision methods like NPV, IRR and PI? You may use the following formulas, CF (1+r) FV PV= PI=> PV, CFo (1+r) 9+ (1+r)