i cant under stand questions a , b,c and d and i need help

( ) What other factors should the directors of Windspeed PLC take into consideration before arriving at a decision as to which of the two projects to undertake ? ( 8 marks ) d ) Explain for the directors of Easifit PLC the advantages and disadvantages of the Net Present Value ( NPV ) method of investmen appraisal 5 marks ) Total : 40 marksSECTION A Answer TWO out of three questions Question Windspeed PLC is C is a manufacturer of motors and gear boxes for powerboats . The company is consideri considering two possible projects in order to increase operational capacity . As Financial DI rector of Windspeed PLC , you have been asked to review the two projects and to provide a recommendation for the e Board of Directors as to which project the company should follow Both projects involve the purchase of new equipment . The new equipment w provide estimated cash flows as follows Project 1 ( E ) Project 2 ( E ) Cost ( immediate outlay ) 440,000 320 000 Expected annual net profit ( loss ) Year 1 180.000 100.000 Year 2 ( 24, 000 ) (9,000 ) Years 30.000 4.000 Expected residual valu 80.00 60.000 The company has an estimated cost of capital of 10 per cent and employs the straight line method of depreciation for all fixed assets when calculating net profit . Project 1 requires additional working capital of $40,000 immediately whereas project 2 requires an injection of worki ng capital of E30 00 0 at the start of year 2 . The company has sufficient funds to meet all capital expenditure requiremen ts , and working capital is fully recovered at the end of project lives Required You are preparing a report for Windspeed PLC . To provide the company with a range of forecasts , you intend to include a number of capital appraisal of for echniques to enable them to make a sound decision on which proje roject to choose . As part of your report , therefore 2 ) Calculate for each project The net present value 10 marks ) The approximate internal rate of return ( 8 marks ) The payback period ( 5 marks ) b ) State which , if any , of the two investment projects should the directors of Windspeed PLC accept , and why ( 4 marks ) Page 3 of 21