Problem1 20 MARKS Delphi Inc is currently evaluating two (2) mutually exclusive projects. The following represents the expected cash flows for both projects. The company's discount rate is 12%. Year Years 0 Project Repair Replace (350.000 (400.000) 125.000 175,000 125.000 100,000 225.000 125,000 PV Factor (12%) 0.8929 0.7972 0.7118 1 2 3 1 2 3 Required: a. Using the following, indicate which project(s) should be chosen under each selection criteria: i. Discounted Payback (6 Marks) ii. Net Present Value (3 Marks) b. Compute the Internal Rate of Return for Project Repair only, if it falls between 12% and 16% Should the company accept this project under the IRR criteria, why? (6 Marks) Year PV Factor (16%) 0.8621 0.7432 0.6407 1 2 3 C. Companies may utilize any of the criteria above to evaluate projects. Identify the criteria that is considered the most favourable, outlining any three (3) advantages of this criteria