Question 4 Potters Ltd is a growing company looking for expansion. They are evaluating Project A and Project B. They can accept either Project A or Project B but not both. Each project will last 5 years and have no salvage value at the end. The company's required rate of return for all investment projects is 10%. The company requires a maximum payback period of 3 years for the projects. Other information relevant to Project A and Project B is provided below. Cost Future Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Project A $180,000 $93,600 $64,800 $81,600 $72,000 $64,800 b) Calculate net present value (NPV) for both projects. Project B $280,000 Required: a) Calculate the payback period of each project by simple payback method. c) Which project should Potters Ltd accept? Explain. $64,800 $86,400 $123,600 $166,800 $187,200 (10 marks) (4 marks) (4 marks) (2 marks