Mohsin Group of Companies is planning to invest $ 150,000 on a project. The finance manager of Mohsin Group of Companies has estimated the annual cash inflows of two different projects i.e. project A and Project B as below:

Particulars	Project A	Project B
Initial Investment	150,000	150,000
Annual Cash inflows
Year
1	25,000	40,000
2	30,000	45,000
3	35,000	45,000
4	40,000	45,000
5	25,000	40,000

As Finance Executive of Mohsin Group of Companies, you are required to evaluate the above two projecting using

(a) Payback Period (10 marks)

(b) Net Present Value at 10% cost of capital (10 marks)

(c) Recommend which project is to be chosen by the company based on both the methods. (5 marks)