most value to a company's wealth. After obtaining the cash flow projections for each plant (see Tables 1), and crunching out the numbers, Saood realizes that the hill is going to be steeper than he thought. The various capital budgeting techniques, when applied to the two series of cash flows, provide inconsistent results. The project with the higher NPV has a longer payback period, as well as a lower Accounting Rate of Return (ARR) and internal Rate of Retum (IRR). Saood scratches his head, wondering how he can convince the Board that the IRR, ARR, and Payback Period canoften lead to incorrect decisions. Table-1-Cash flow Estimation Required 1. Calculate the NPV for the two projects and explain the relevance using 10% as the discount rate. Howshould Saood convince the Board that the NPV method is the way to go