Expansion PLC has an empty department in one of its factories that could be used to expand the production of current products or produce new products. Four proposals have been submitted in relation to this department. Each proposal would fully use the empty department but only one of the proposals can be accepted. Table Q22(a) shows the information obtained from the proposals. The cash flows for year 5 include, where applicable, the sale of the fixed assets purchased (year 0) at residual value. The company's cost of capital is 10%. (1) Calculate payback period internal rate of retum (IRR) and the net present value (NPV) for each project. Based on the answer obtained in Q22(a)(1), identify which project should be selected by the company and the reason why. Discuss the advantages and disadvantages of Net Present Value (NPV) to evaluate the financial attractiveness of an energy efficiency project. Table Q22(a) Proposal 1 (RM) 2 (RM) 3 (RM) Cash flows 4 (RM) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 120,000 80,000 60,000 40,000 20,000 -40,000 -95,000 10,000 40,000 40,000 60,000 50,000 -80,000 30,000 40,000 30,000 30,000 20,000 -160,000 30,000 50,000 90,000 80,000 60,000 Residual Value 0 5,000 0 40,000