Q3. A project has following cash flows, like; Initial investment 1000,000 and cash inflows generated are 371779 for next 4 years. Cost of capital is 20%. The project manager is asking government to provide some subsidy. For calculating subsidy following options are given. Which option will be best option to get subsidy from government. 1. PB of the project becomes 2 years 2. IRR of the project 25% 3. Npv of the project is 175,000 4. NPV of the project is 65000 at 25% cost of capital (10) CALCULATE NPV, IRR, PROFITABILITY INDEX, PAYBACK PERIOD AT required rate of return 13% for project A&B. (7.5) CALCULATE IRR, NPV AND CROSS OVER RATE OF THE TWO PROJECTS. (7.5)