Question 5 (20 marks) Since you graduated from Yorkville University your career has skyrocketed. You are now designated as a high potential candidate within your organization. You send emails to all your professors at Yorkville University thanking them for their instruction. Unfortunately, many other students are not doing as well as you in their careers. These students (such as Bill Sing) were never interested in reading the textbook (or buying it for that matter) or doing any homework. Your company has now put you in charge of looking at investing in one of two new product launches. These projects involve expanding production in order to launch new products. The table below are the forecasted cashflows for each of these initiatives. Year Product A Product B 0 -27,000 -72,000 1 16,000 30,000 2 16,000 30,000 3 3,000 15,000 4 3,000 200,000 5 1,000 5,000 Using a 22% discount rate, calculate the NPV, IRR and Payback for each of these initiatives. Which one would you recommend? The CFO is very concerned about short term liquidity and wants you to focus your recommendation on the Payback method. Would this change your recommendation? You recently got a call from Bill Sing and he tells you that he cannot find a job.