Q-1: Raza's Generators is considering two kinds of Generators, a 20 KVA, 30 KVA and 50KVA in this year's capital budget. The projects are independent. The initial investment for the 20 KVA systems is $150,000 while on the other hand $200,000 for 30 KVA and for 50 KVA systems it is $250,000. The firm's cost of Capital is 10%. On the basis of following cash flows which project you will chose? [20 Marks] Years 1 2 3 4 5 6 7 8 9 20 KVA System INFLOW OUTFLOW 45,000 45,000 45,000 45,000 4,000 5,000 5,000 55,000 5,000 55.000 55,000 55,000 6,000 55,000 6,000 6,000 75,000 6,000 75,000 6,000 80,000 25,000 80,000 80,000 80,000 80,000 20,000 30 KVA System INFLOW OUTFLOW 50,000 50,000 50,000 50,000 6,000 60,000 6,000 60,000 6,000 60,000 60,000 60,000 10,000 10,000 10,000 80,000 10,000 80,000 10,000 80,000 40,000 80,000 95,000 95,000 100,000 75,000 80,000 50 KVA System INFLOW OUTFLOW 60,000 60,000 60,000 60,000 7,000 7,000 70,000 7,000 70,000 7,000 70,000 70,000 70,000 15,000 15,000 15,000 85,000 15,000 85,000 15,000 90,000 40,000 90,000 100,000 100,000 100,000 75,000 85,000 10 11 12 13 14 15 16 17 18 19 20 a) On the basis of MIRR, which project should be accepted? b) On the basis of NPV, which project should be accepted? c) On the basis of Profitability Index, which project should be accepted? d) On the basis of discounted Payback which project should be accepted?