Question 3 (15 marks) (a) Two new financial plans are proposed to a young start-up company. Plan A will cost $250,000 to implement and is expected to have annual net cash flows of $75,000. Plan B will cost $150,000 to implement and should generate annual net cash flows of $52,000. The company is very concerned about their cash flow. The life of the proposed projects are 5 years. (1) Use the payback period to determine which plan is better, from a cash flow standpoint? (3 marks) (ii) If the required rate of return is 0.1, conduct a discounted cash flow calculation to determine which plan is better (4 marks) (iii) What are some advantages and disadvantages of the profit profitability numeric models? (3 marks) (b) A sales project at month 5 had an actual cost of $34,000, a planned cost of $42,000, and a value completed of $39,000 (1) Find the cost, schedule variances and the cost-schedule index. (3 marks) (ii) Comment on the project performance. (2 marks) Rubrics and Marking: Totally 15 marks, and the marks for each sub-question are shown after the question. Marks will be given by the ability to apply methods for project selection and monitoring