Noko Creatives is in the process of choosing the better of two equal$-$risk, mutually exclusive

capital expenditure projects, Project Sky and Project Galactic. The relevant cash flows

for each project are shown below together with the net present value of the projects

using the costs of capital given.

Required:

Fim $220$ assignment $220224$

pg$.4$

$($a$)$ Calculate the payback period for each project.

$(6$ Marks$)$

$($b$)$ Calculate the net present value $($NPV$)$ for each project using a cost of capital of

Marks$)$

$($c$)$ Calculate the internal rate of return for each project.

$(14$ Marks$)$