Hobbiltbourg Inc. has the possibility of carrying out two different projects: Bree and Fondoombe. Each of the two projects has a technological lifespan of 10 years and an economic lifespan of 5 years and requires an investment of $ 4,500,000 to purchase new machinery. These projects are expected to generate identical revenues over the next 5 years. The resale values of the machines at the end of the fifth year are $ 900,000 for Bree and $ 1,350,000 for Rivendell Year 1 2 3 Income $ 3,600,000 $ 3.750.000 $ 5,400,000 $ 7.500.000 $ 9,000,000 Bree expenses $ 2.100.000 $ 2.550,000 $ 2.700.000 $ 2,850,000 $ 4.500.000 Rivendell Expenses $1,500,000 $ 2.250,000 $2.550,000 $2,700,000 $ 3.600,000 5 at) Determine the payback period, NPV and IRR for each of the projects concerned and say which of the projects is preferable based on each of these criteria. The required rate of return is 10%; b) During an internal audit, the production manager, Mr. Peregrin Touque, realized that his department had made an error in the allocation of manufacturing overheads (FGF). Therefore, he asks his deputy director, Mr. Meriadoc Brandebout, to consider the following data for analysis: Operating profit over sales Year 4 5 50% Operating profit Twingo (Broe) Operating profit Satrane (Fondoombe) 29.167% 32% 33.33% 45% 50% 40% 22.22% 36% 41.67% In the light of the information provided to Mr. Meriadoc Brandebouc, will your conclusions in a) remain the same