Question 4 (30%) Al Shams Capital group is planning to invest its 1.1 million dirhams in one or more of the following projects. Suppose that the average cost of capital is 10%. The proposed initial investment and expected net cash flows for each alternative projects are provided as follows: Projects Initial Investment Net cash news Project A 650.000 dirhams 1 250,000 2 165,000 3 150,000 120,000 5 90,000 Year 4 Project B 850,000 dirhams 1 2 3 250,000 210,000 210,000 190,000 160,000 4 5 Project C 420,000 dirhams 1 2 3 100,000 190,000 80,000 120,000 90,000 4 5 Required? (a) Compute the payback period for each project. (b) Compute the net present value of the projects. (c) Calculate the Profitability index of the projects (d) Rank the projects based on their payback, NPV and profitability index rosults. (e) Discuss and interpret the results