Potters Ltd is a growing company looking for expansion. They are evaluating Project A and Project B. They can accept either Project A or Project B but not both. Each project will last 5 years and have no salvage value at the end. The company's required rate of return for all investment projects is 10%. The company requires a maximum payback period of 3 years for the projects. Other information relevant to Project A and Project B is provided below. Required: a) Calculate the payback period of each project by simple payback method. ANSWER a: (4 marks) b) Calculate net present value (NPV) for both projects. ANSWER b: (4 marks) c) Which project should Potters Ltd accept? Explain. (2 marks) Potters Ltd is a growing company looking for expansion. They are evaluating Project A and Project B. They can accept either Project A or Project B but not both. Each project will last 5 years and have no salvage value at the end. The company's required rate of return for all investment projects is 10%. The company requires a maximum payback period of 3 years for the projects. Other information relevant to Project A and Project B is provided below. Required: a) Calculate the payback period of each project by simple payback method. ANSWER a: (4 marks) b) Calculate net present value (NPV) for both projects. ANSWER b: (4 marks) c) Which project should Potters Ltd accept? Explain. (2 marks)