Question $4(10$ marks$)$

Investments A and B$,$ each requires an initial investment of P$1$ million today $($i$.$e$.$ last day of $2017)$ and

promising cash flows at the end of each of the following $5$ years at $10\%$ discounting rate;

Required:

$($a$)$ Calculate the net present value for the two investments. $(6)$

$($b$)$ Calculate the discounted payback for investment A$.(4)$