Merreen Industries is contemplating three projects; Project(s) A, B and C. The capital costs for the initiation of each independent project and the estimated after tax net cash flows are listed below; Project A 300,000 Initial Cost Project B 379,500 Project C 285,000 $ $ $ Annual Net Cash Flows Year 1 Year 2 $ Year 3 Year 4 $ Year 5 $$$$$ 84,750 84,750 84,750 84,750 84,750 $ $ $ $ $ 135,000 $ 127,500 $ 112,500 $ 82,500 $ 75,000 $ AAj hi | 67,500 82,500 97,500 105,000 112,500 Merreen's desired after tax opportunity cost is 12% and the company has a capital budget for the year of $675,000. Required: a. Calculate the NPV for each of the projects. b. Calculate the IRR for Project A. C. Calculate the Profitability Index for each project. d. Which projects will you recommend that Merreen choose and why? e. Briefly explain the benefits of sensitivity and scenario analysis? (9 marks) (3 marks) (3 marks) (2 marks)