PART B Chang De Silva Lid, an Australian entity, is offered three projects for which the cash flows are as follows in thousands of dollars. The directors work on 14 per cent as their required rate of return (RRR). Assume all cash flows occur at the end of the relevant year. No scrap values are expected for any of the projects. Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 380 70 80 95 100 Y 310 80 100 140 150 80 Z 260 130 70 40 30 Required a. Calculate ARR and PP for each project. 6 marks b. Rank the projects and advise Chang De Silva which projects, if any, to accept. Give your reasons. 2 marks c. What other information would be useful to consider as part of your investment decision? 4 marks