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(e) If you wish to accumulate $197,000 in 5 years, how much must you deposit today in an account that pays a quoted annual interest

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(e) If you wish to accumulate $197,000 in 5 years, how much must you deposit today in an account that pays a quoted annual interest rate of 13% with semi-annual compounding of interest? (1) Your company is considering two mutually exclusive projects, A and B. Project A involves an outlay of 250 million which will generate an expected cash inflow of 15 million per year for 25 years. Project B calls for an outlay of 400 million which will produce an expected cash inflow of 35 million per year for 30 years. The company's cost of capital is 18%. Calculate the NPV of each project A and B. I Propose on which project the company should be invested. Justify your proposal providing reasons. (Hint: Use annaulised PV Tables) (5 marks each x 5 - Total 25 Marks)

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