Lake Inc is faced with several investment opportunities. The projects are mutually exclusive, and he is faced with limited capital. Consider the following cash flows relating to the projects: Year Machine A Machine B 0 $(120 000) $(105 000) 1 40 000 30 000 2 50 000 45 000 3 35 000 30 000 4 42 000 25 000 5 20 000 20 000 A The projects' cost of capital is 12%. As a financial analyst you have been asked to perform the following task: i. Calculate the projects' payback period. (2 marks) ii. Calculate the projects' Net Present Value (NPV) (12 marks) iii. Make a recommendation as to which project should be undertaken and why? (2 marks) Briefly explain the following concepts: i. independent projects ii. mutually exclusive projects unlimited funds iv. capital rationing (4 marks) B. 111