Question 4 (15 marks) Orange Inc. is considering the following two projects A in Germany and B in India, respectively: Year Cash Flow (A) Cash Flow (B) 0 -1,000,000 -500,000 1 400,000 200,000 2 500,000 350,000 3 600,000 400,000 The discount rate for Project A is 10%, and the discount rate for Project B is 15%. a) i. If the cash flows are assumed to occur evenly throughout the year, what is the payback period for each project? Show your calculation. (3 marks) ii. If project A and project B are independent, and the required payback period for the company is 2 years, which project(s) should be accepted? b) i. Calculate the profitability index for each project. (1 marks) (3 marks) ii. Suppose Project A and Project B are mutually exclusive (i.e., you can choose either one of them but not both), which project(s) should be accepted when the profitability index rule is considered? c) i. What is the Net Present Value for each project? Show your calculation. (1 marks) (3 marks) ii. If project A and project B are mutually exclusive, which project(s) should be accepted? (1 marks) d) Based on your answer in part (c), discuss whether the IRR would be greater than 10% for each project. (the answer should base on part c, exact IRR for A and B are not required) (3 marks)