Question 2 The following 3 projects have an initial investment of 200,000 (200K) but have different yearly cash flows and different durations. Project A Project B Project C Year 0 (200K) (200K) (200K) Year 1 20K 80K 60K Year 2 40K 60K 60K Year 3 60K 60K 60K Year 4 60K 40K 60K Year 560K 40K Year 6 68K 20K (a) compare the 3 projects by calculating their payback periods (b) compare the 3 projects by calculating their average gross annual rates of return (c) compare the 3 projects by calculating their NPVs using a discount factor of 7% as shown in the table below. (d) which project would you recommend the company to choose and why? State any assumptions made. NPV @ 7% Discount Rate Discount table extract for 7% discount rate Year 0 1.0000 Year 1 0.9350 Year 2 0.8730 Year 3 0.8160 Year 4 0.7630 Year 5 0.7130 Year 6 0.6660