Project A: Project B: Cost of Project Additional Revenue per year 1,695,000 1,957,080 1,009,113 1,551,623 Additional Expenses per year (these expenses do NOT include depreciation expense) 1,350,000 1,273,555 Estimated Life Residual Value Cost of Capital 14,720 12% 5,262 14% additional information: All of the revenue will be received and all of the expenses will be paid by year-end The straight line depreciation method is used. Expanded present value tables are in Canvas Report: Compute the cash payback period, the ARR, and the NPV of each project. (worth 70% of project grade) Compute the excess present value index for each project. (5%) Disregarding residual value, what is the approximate IRR for each project? (10%) Describe the advantages and limitations of evaluating projects using these three methods of capital budgeting: cash payback analysis, ARR, and NPV. (10%) Which is the better project for your company? Describe your reasons for selecting this project. (5%)