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Q2. The CFO of an MNC is evaluating two projects - Project AI & Project AR. The project team has provided the yearly cash flows

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Q2. The CFO of an MNC is evaluating two projects - Project AI \& Project AR. The project team has provided the yearly cash flows along with the initial investment required in the beginning (Year 0). Use the risk-free discount rate of 10% to evaluate and rank the two projects based on Net Present Value (NPV), Profitability Index (PI), and Discounted Payback Period methods. If any one project has to be chosen, which of the two should be selected and why? (14 Marks) (All Cash Flows are in INR Millions)

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