F11 f12 QUESTION 2 a) Swanson Industries has a project with the following projected cash flows: . - Initial Cost, Year 0: $240,000 Cash flow year one: $25.000 1ii . Cash flow year two: $75,000 . 2 Cash flow year three: $150.000 Cash flow year four: $150,000 Using a 10% discount rate for this project and the NPV model should this project be accepted or rejected? 10 marks b) For each row on the following chart, enter the letter of the project you would select based on the information provided. Project A Project B Which project would you pick Net present value $95,000 $75,000 IRR 13 percent 17 percent Payback period 16 months 1 months Benefit cost ratio 2.79 4 marks c) Why should an organization not rely only on ROI to select projects