Question 4 Not yet answered Marked out of 10.00 Flag question Fitch Industries is in the process of choosing among five equal risk, independent capital expenditure projects. The relevant cash flows for each project are shown in the following table. The firm's cont of capital is 10% (L03) Initial investment (CFO) Year () 1 2 3 4 Project A Project B (60000) (205000) Cash inflows (CFt) 15000 46000 8000 40000 12000 46000 8000 46000 8000 46000 8000 46000 20000 46000 8000 46000 8000 46000 8000 46000 6 7 Goa 10 7 8 46000 46000 8000 20000 8000 8000 8000 9 46000 46000 46000 10 a Calculate each project's payback period. b. Calculate the net present value (NPV) for each project. e. Calculate the internal rate of retum (IRR) for each project. d. Calculate the profitability Index (PT) for each project. e. Summarize the preferences dictated by each measure you calculated, and indicate which project you would recommend. Explain why. f Draw the net present value profiles for these projects on the same set of axes, and explain the circumstances under which a conflict in rankings might exist EXCEL