PARTITIONING / RISK ABSORPTION RATIO 1) The following alternative projects are available to an organisation: Note Yr 6 does not include the residual cash flow. Assuming that each of the projects can be financed with a 60% loan and that interest only payments are $16,000 per annum, calculate the following measures of return to the equity: Net Present value using a discount rate of 13%, internal rate of return. Partition the internal rate of return into income, return of initial equity and reversion components. Calculate the risk absorption ratio. Which project would you recommend? Why