Exercise 1 (20%) Dependent Investment Decisions The UEFA and FIFA Tickets Sales Agency Inc. (the company) is considering three alternative investment proposals that will increase their tickets sales during the EUROs and World Cup in football, but can only accept one of these alternatives. The initial investments and cash flows are shown below: Year o Year 2 Year 4 Year 6 Year 8 Cash Flows EUR Project A Project B Project C -75,000 -100,000 -150,000 50,000 75,000 50,000 75,000 75,000 100,000 75,000 75,500 150,000 57,000 75,000 100,000 The company uses discounted cash flow techniques to evaluate its investments, using a cost of capital (discount rate) of 12.00%. Compare for each alternative investment the: . . Net present value (NPV) Annuity value per year (annuity cash flow per year) Profitability index (PI) Discounted payback period (full year only) . . A. Which of the three investment proposals (A, B or C) would you prefer and why? B. Discuss the relation between NPV and the annuity value found in Question A. You should use a maximum of 4-5 sentences