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Question 3: Answer the following questions: (12 Marks) 1. Quattro, Inc. has the following mutually exclusive projects available. The company has historically used a four-year

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Question 3: Answer the following questions: (12 Marks) 1. Quattro, Inc. has the following mutually exclusive projects available. The company has historically used a four-year cutoff for projects. The required return is 11 percent. (10 Marks) Year Cash Flow (A) Cash Flow (B) 0 -$82,000 -$125.000 1 15.700 38.600 2 18.300 33.400 3 23.900 31.200 26.200 27.500 5 32.100 24.000 Calculate the payback for Project A and the payback for Project B. The NPV for Project A and the NPV for Project B. Which project, if any, should the company accept? (2* 5 - 10 Marks) 4

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