Question 12 (10 points) Listen The Symington Corporation Ltd. is considering investing in one of two mutually exclusive projects. Project A requires an immediate cash outlay of $1,000, while project B requires an immediate cash outlay of $1,400. Project A has a life of four years; Project B, five years. The cost of capital is 10%. After taxes net cash flows generated by each investment have been as follows: Year O 1 2 3 4 5 Investment ($1,000) $250 $300 $400 $500 -0- B ($1,400) $600 $500 $400 $300 $200 1. Calculate payback for each investment. (2 marks) 2. Calculate the Net Present Value (NPV) for each investment. (2 marks) 3. Calculate the Internal Rate of return (IRR) for each investment. (2 marks) 4. Calculate the Profitability Index (PI) for each investment. (2 marks) 5. Which investment would you select? Why? (2 marks) Note: Once you click in the table below, you can drag the dotted triangle at the bottom right corner of the text editor window to make it bigger. If you accidentally delete the below table, you can add a new one using the rich-text editor, or try to make your answer as clear as possible using paragraphs and spaces