Question 4: At the beginning of 2022, a business enterprise is trying to decide between two potential projects. Assuming a requiredrate of returnof 10% p.a., and Depreciation is provided using the straight line method. Evaluatethe investment proposalsunder: (a) return on investment, (b) payback period, (c) discounted payback period, and (d) profitability index

Proposal AProposal BCost of Investment$20,00028,000Life4 years5 yearsScrap ValueNilNilNet Income (Afterdepreciation and tax) End of 2015$500NilEnd of 2016$2,000$3,400End of 2017$3,500$3,400End of 2018$2,500$3,400