Question 4 A company is thinking in investing in one of two potential new products for sale. The projections are as follows: Year Revenue/cost (Product A) Revenue/cost (Product B) ON 2 3 4 (45,000) outlay 7,200 7,200 13,200 25,200 (45,000) outlay 3,600 7,600 15,600 19,000 a) Calculate the payback period for both products (2 marks) b) Calculate NPV of both products assuming a discount rate of 7% (6 marks) 1 c) Which product should be chosen and why? (2 marks) d) Calculate the IRR for Product A only using 3% and 19% to 1d.p. (4 marks) e) Outline the advantages and disadvantages of the NPV, payback and IRR (6 marks) (Total 20 marks) (LOs: 1)