Question 2 Answer the following questions: a) KALISPERA Company is considering undertaking one of the four projects given below. The cost of each project is $2 million. Using net present value (NPV) decision rule, determine which project the company should accept. Show your calculations in full. (70%) Cash Flow Project A Project B Project C Project D Year 1 $500,000 $600,000 $1,000,000 $300,000 Year 2 $500,000 $600,000 $800.000 $500,000 Year 3 $500,000 $600,000 $600,000 $700.000 Year 4 $500,000 S600,000 $400.000 $900.000 Year 5 $500,000 $600,000 $200.000 $1,100,000 15% 9% 22% 6% Discount Rate b) There are various decision models that we use to perform capital budgeting Provide a summary of their respective characteristics by addressing issues of decision criterion complexity of application time value of money, risk, and economic basis and evaluation Critically discuss which one is the best option for a finance manager (30%)