Question 1 (40marks) a) As part of your role as Project Manager, you are required to assess the viability and benefits of two projects, A and B. The following information is available to you: The initial capital outlays, in Sm, for each of the project s are estimated as: Project A 22.00 Project B24.00 The company's Financial Director has estimated the yearly revenues, in $m, for each of the projects over a period of 9 years to be: Year Project Project B 2.00 4.50 5.75 7.50 9.00 9.50 8.50 7.00 5.00 1.00 3.50 6.00 8.50 10.00 10.00 9.50 8.50 7.00 4 6 7 9 He also expects that in the present financial climate, interest rates will vary over this period. Estimates of this rate variation are as follows: Year 1,2 and 3 4 and 5 6,7,8 and 9 Interest rate 3% 4% 5% Calculate the net present value of EACH of the projects, and advise the company which of the two projects should be chosen. (20)