Gama Rays United Gama Rays Limited is considering bunch of product with two different strategies: Strategy and Strategy and it has to choose either Option A or Option 3. Both the strategies have Initial outlay of NR. 20 crores but have different streams of inflows. Over a period of 5 years, the cash flows (in lakhs) of the strategies are as below. Year 0 1 2 3 4 5 Option A -2000 500 850 550 650 400 Option 1000 875 500 140 200 0 Find out the NPVs of both the strategles at discount rates between 10% to 20% at intervals of 2%. Marks) Rind out the internal rate of returns (IRR) for both the strategles and Which of the strategy is preferable based on rule of IR? Marla) Plot the NPV profiles for both the strategies by using Excel. At what discount rate, the two strategies would be equally preferrable? And what does this III) discount rate mean? Martes) IV Which of the two strategies is preferable If the cost of capital is (a) 12% (b) 14%? 12 Marks)