Question 5 a) A firm is considering a future investment. Describe which types of cashflows the firm should or should not include in its investment decisions and why.(10 marks) b) If a firm is considering two investments that would be expected to have cashflows that occur annually as detailed below, evaluate the investments using NPV, payback, discounted payback and PI, assuming a discount rate of 5%. Which project should the firm choose and why? If they could invest in both should they? Project A Project B Now 300,000 -300,000 1 year 200,000 110,000 2 years 00,000 10,000 3 years 15,000200,000 4 years 0,000 200,000 (20 marks) c) How would the company decide on what discount rate to use for these calculations