Q$2$ Consider the following data for two Investments $($assume MARR$-$minimum acceptable annual

rate of return on original investment of $20\%$ after taxes and ignore land value, startup costs$)$

For Investment no$.1,$ annual revenue before tax is constant every year and is Rs$.80,000.$

Also, annual cash flow $($ACF$)$ after taxes for yr $1=$ Rs$.50,000,$ for other years is not known.

For Investment no$.2,$ annual revenue $($after tax$)$ is: yr $1=$ Rs$.110,000,$ yr $2=$ Rs$.120,000,$

yr $3=$ Rs$.130,000,$ yr $4=$ Rs$.140,000,$ yr $5=$ Rs$.150,000,$ yr $6=$ Rs$.170,000.$ For Investment

no$.2,$ annual cash flow $($ACF$)$ after taxes for yr $1=$ Rs$.55,000,$ for other years is not known.

Assume annual depreciation to be evaluated by sum of years digits method and for time value

of money considerations, end of year costs to be used. Also income tax rate $=20\%$ yearly.

A$)$ Determine the values of $\text{'}A\text{'},\text{'}B\text{'},$ in above table $($upto $2$ decimals$)5+5=10M$

B$)$ Based on Net Present Worth method, which investment should be preferred?

Provide clear mathematical justification with explanation.

$20M$