QUESTION 3 A company manager is deciding on the following projects which are mutually exclusive. Each project has a life span of 3 years. The company's required rate of return on investments is 10%. Initial outlay Cash inflow (RM) Project Project A (RM) 100,000 Yr 1 (RM) Yr 2 (RM) Yr 3 (RM) 90,000 40,000 20,000 Project B 120,000 68,000 68,000 68,000 a) Calculate the Payback Period of each project. Based on your results, which project would you choose and why? (Use simple payback period. Show your workings clearly) [5 marks] b) Provide any TWO (2) benefits and any TWO (2) shortcomings of simple Payback Period in capital investment decision. [4 marks] c) What is the Net Present Value (NPV) of each project? Based on your results, which project would you choose and why? (Show your workings clearly) [4 marks] d) Calculate the Internal Rate of Return (IRR) of each project. Based on your results, which project would you choose and why? (Show your workings clearly) [7 marks] Total: [20 marks]