KSA investments plc is looking to take on a new investment. The company will evaluate two mutually exclusive projects. The cost of capital is $8\%.$

the first project initial investmen is $110,$ first year is $35,2$nd year $50,3$rd year $60,4$th year $50,5$th year $75$ cashflow.

the $2$nd project initial investment is $138,$ first year $65,2$nd year $50,3$rd year $40,4$th year $20$ and $5$th year $10.$

calculate the pay back period, the net value of both projects and critically discussed the merits of each investment appraisal method, then discuss the result of the evaluation u have made of both projects and advice the company which project should be undertaken