Q5. Using the discount rate of 8% and farmer information shown in table 4 below, you are required to; (a) Calculate the pay-back period for each project. (4 Marks) (b) Calculate the net present value (NPV) for each project. (10 Marks) (c) Determine which project would you recommend to the farmer and why? (2 Marks) Table.4: Cash flows for alternative capital projects Project Name Initial Cost (K) Year 0 Net Cash flows after year 0 (K) Year 1 Year 2 Year 3 Year 4 Year 5 90,000 0,000 65,000 65,000 Purchase of a tractor 300,000 90,000 Construction of a storage house 300,000 70,000 70,000 70,000 70,000 70,000 Note that the farmer can implemented only one project at a time