Question 6 ( 40 Marks) 6.1 The Namibia University of Science and Technology (NUST) is evaluating two new projects A and B. Nust has determined that the after-tax cash flows for - project A will be 400;400;400;400 respectively, for each of the Years 1 through 4 . The initial cash outlay will be N\$1,000 - project B will be 600; 400; 200; nil respectively, for each of the Years 1 through 4 . The initial cash outlay will be N $1,000. Find the Payback period for Project A and B ? (10) 6.2 A firm expects the following stream of cash flows from its project of N500,000 per anum for 5 years. The projects' initial costs are N\$1.0 million and company's cost of capital is 10%. Determine whether the company ghould take this project or not using NPV. (10) 6.3 Mrs. Simatag is evaluating a new project for her firm, Bagket Wonders (BW). A firm expects the following stream of cagh flows from its project of N\$500,000 per annum for 5 years. The projects' initial costs are N$1.5 million. a) Find the PI When evaluating the discount rate is 10% ? (5). b) Should this project be accepted? (2) c) When evaluating the NPV at the rate of 10% and 32% they found the following values: Evaluate the Internal Rate of return (IRR)? (6) 6.4 A company has the following profits from a project over a five-year period; N\$2000, N\$1500, N\$2200, N\$1200 and N\$4000. The initial investment is N\$20,000. The company's target accounting rate is 19%