MODEL AMODEL B K000 K000 Initial Capital outlay 1000000 1500000 Projected Net Cash Flows: Year 1 480000 320000 ,, 2 200000 300000 ,, 3 200000 600000 ,, 4 100000 200000 ,, 5 300000 240000 ,, 6 160000 500000 Scrap value 40000 160000 The companys cost of capital is 12%. It depreciates all its tangible non- current assets on straight line basis. It is the policy of the company not to add the scrap value to the net cash inflow at the end of each proposals economic life. REQUIRED: a) Calculate for both models a) The Payback period (Conventional or Traditional) in years to two decimal places (4 marks} i. The Net Present Value ( NPV) (5marks) ii. The Profitability Index (PI) to two decimal places (3 marks) iii. The Accounting Rate of Return (ARR) to two decimal places(5marks) iv. Internal Rate of Return (IRR) to two decimal places (5marks)