Please make all the required options thanx :)

Dilemma of MODAMAR Modamar was established in 1995 and has been profitable since then. Nowadays they plan to mke investment to a new packaging machine. Product development department head Mrs. Galip and Mr. Maglup come up with two alternatives. First model SARUMAN has a lower initial investment. Second model ARAGON has a higher initial investment yet higher capacity as well. Both teams calculate the cash flows of their proposals and present with the supporting documents. Now is time to choose one of them. Aynur Fardan a fresh graduate of BAU Engineering Management Department was given the task to analyze both proposals and report to the supervisor. Aynur is aware that there is no common view among the supervisors and she needs to explain her findings. In the past there were times which the board members have used profitability ratios as a comparison criteria. There were also times when they have used payback period. Aynur herself believes NPV is the most reliable method for project valuation After digging into the numbers, Aynur realizes that her job is harder than it seems. The results of methods differ. The project with higher NPV has higher payback period and lower IRR. Aynur looks at the numbers while scratching her head. 2020 2021 2022 2023 2024 2025 ARAGON 500.000 Net Income Depreciation Net Cash Flow 150.000 200.000 350.000 200.000 200.000 400.000 300.000 200.000 500.000 450.000 200,000 650.000 200.000 700.000 -1,000,000 2020 2021 2022 2023 2024 2025 SARUMAN 140.000 40.000 40.000 440.000 160.000 600.000 Net Income Depreciation Net Cash Flow 240.000 160.000 400.000 160.000 160.000 300.000 160.000 200.000 -800.000 200.000 Required 1. Calculate payback period and discounted payback period. How could Aynur explain that pay back period would not be a perfect method to use? 2. Calculate the IRR of both projects. How could Aynur explain to the board that it would not be hundred percent safe to use IRR. 3. Calculate the NPV using WACC-10%. How could Aynur discuss with the board members that one needs to be cautious while using NPV? 4. How could Aynur explain that MIRR could be a much better alternative? 5. If Mr. Maglup forecasts of ARAGON are a little more pessimistic than Mrs. Galip's SARUMAN, how would that information impact your decision making and your analysis? 6. If there is significant amount of technology ARAGON requires and SARUMAN technology is almost ready, how would this effect your decision