IL.Cupi D . Provide an evaluation of two proposed projects, both with 5-year expected identical initial outlays of $110,000. Both of these projects involve additions donia's highly successful Avalon product line, and as a result, the require return on both projects has been established at 12 percent. The expected fre flows from each project are as follows: ected lives and additions to Cale- required rate of xpected free cash Initial outlay Inflow year 1 Inflow year 2 Inflow year 3 Inflow year 4 Inflow year 5 PROJECT A -$110,000 20,000 30,000 40,000 50,000 70,000 PROJECT B -$110,000 40,000 40,000 40,000 40,000 40,000 In evaluating these projects, please respond to the following questions: a. Why is the capital-budgeting process so important? b. Why is it difficult to find exceptionally profitable projects? c. What is the payback period on each project? If Caledonia imposes a 3-year maximum acceptable payback period, which of these projects should be accepted? d. What are the criticisms of the payback period? e. Determine the NPV for each of these projects. Should either project be accepte f. Describe the logic behind the NPV. g. Determine the PI for each of these projects. Should either project be accep h. Would you expect the NPV and PI methods to give consistent accepter decisions? Why or why not? i. What would happen to the NPV and PI for each project if the require return increased? If the required rate of return decreased? j. Determine the IRR for each project. Should either project be accepte the required rate of