Question 5 (20 marks) Consider the following cash flows of two mutually exclusive projects where the required rate of return is 15% Year Project Red Project White 0 -S1.200 -$2,000 1 600 1,000 2 550 900 3 450 800 Based on the payback period rule, which project should be chosen and why? i. (4 marks) ii. Suppose there is no corporate tax and the cash flows above are income before the depreciation. The firm uses a straight line depreciation method to zero. Based on the accounting rate of return, which project should be chosen and why? (4 marks) iii. Based on the internal rate of return (IRR), which project should be chosen, and why? (5marks) iv. Based on the net present value (NPV), which project should be chosen and why? (4 marks) v. Based on the profitability index (PI), which project should be chosen and why