Oreander Inc is considering two (2) mutually exclusive projects. The company is seeking to expand its operations and is evaluating the benefits of opening a second location in Chaguanas and/or Arima. The projected cash flows of both projects are as follows: Years 0 1 2 3 Project Chaguanas Arima (350,000) (400,000) 100,000 55,000 125,000 100,000 195,000 220,000 250,000 175,000 4 The company has a required rate of return of 10%. The following PV factors are provided below: Year PV Factor (10%) 0.9091 0.8264 0.7513 0.6830 PV Factor (12%) 0.8929 0.7972 0.7118 0.6355 2 3 4 Required: a. Given the required return of 10%, evaluate the projects using each of the following criteria, stating which project(s) you will choose under each criteria and why: i. Payback 4 Marks ii. Discounted Payback 6 Marks iii. Net Present Value 4 Marks b. Compute the IRR for the Arima project only, if it falls between 10% and 12%. 6 Marks