Question 1 10 points Chapter 10 The Luxury Company is an established Italian multinational automaker that has its main headquarters in Milan, Italy. . It was founded by Alexander Williams and incorporated on October 19, 1919 and had ever since been selling automobiles and commercial vehicles under the Luxury brand to the world. The UAE has been one of Luxury's most loyal customers since the 1980s. You work as a financial analyst and have recently been placed onto an assignment with the Luxury Company, which is currently evaluating two MUTUALLY-EXCLUSIVE projects: Project ROAR and Project BOAR. . Both projects aim to further expand the firm's presence in the MENA region and are expected to go on for 5 years each. In addition, Project ROAR will require an initial investment of $250 million, and Project BOAR will need S225 million in cash outflow to start off. Importantly, Project ROAR will generate $85 million each year during the 5-year period, while Project BOAR will produce an annual cash inflow of $65 million. The applicable discount rate used by the Luxury Company is 10%. The recent financial information, namely the costs and expected cash flows of these two projects released by the company's management, is presented below. You have also been given the following information on Project BOAR: Capital Martini Pack Pride Discounted Payback Period 4.27ycom Im Rated K 130 The conditions of the company's loan with the Middle East Bank state that the money that the Luxury Co. has borrowed for funding their projects must be returned to the bank in no later than 5 years. . Based on the information above, answer the questions that follow and show all workings and intermediate calculations along with the final answer. a Calculate the Payback Period for Project ROAR and interpret its meaning. Based on your answer in Part (a), discuss which project(s) the Luxury Co. shouse (1.5 points) 6:12