Project A has an initial investment of Rs$.19\mathrm{.}5$ million and projected cash inflows of Rs$.50\mathrm{.}00\mathrm{.}000$ for $5$ years. Project $8$ has an initial investment of Rs$.16\mathrm{.}5$ million and projected cash inflows of Rs$.45,00,000$ for $5$ years. Assume the discount rate to be $9$ percent during Year $1$ and thereby increases by $1$ percent each year. Work out the NPV of the two projects and compare the results. Which project should be approved? Why?

$[7$ Marks$]$