Pls do not handwrite the answer, this is for easy reading

Question1)

On your first day at work, Paul Han, The Executive Director for the conglomerates high-end health juice business, gave you a choice of working on one of the three subdivisions that report to him. The teams are divided according to the three major types of capital investment project classifications.

Han sees that you have a good understanding of revenue enhancing projects and wants you to analyze the potential of opening a premium juice bar on Orchard Road. It requires an initial investment of S$750,000.00 and results in a cash flow of S$225,000.00 each year for the next 4 years. The relevant discount rate is 5%.

a)Describe and differentiate between the following three types of capital investment projects. You may use an example to illustrate your explanations.

i)Revenue enhancing projects

ii)Cost-reducing projects

iii)Mandatory projects due to regulation

b)Calculate the discount payback period for the premium juice bar project.