Question A (AR1: 5 Marks] You are considering a massive expansion of your manufacturing facility in Green Company. Two proposals are being considered. The first facility S, will cost $220,000 immediately and will produce $32,000 per year in cash flows for the next ten years. The second alternative, T, will require an outlay of $440,000 and will produce cash flows of $72,000 per year for the next ten years. The required rate of return on both of these projects is 9 percent. Required: 2. 3. Calculate the net present value and profitability index for both projects. (2 marks) If you can undertake only one of these two projects, which will you choose? (2 marks) If you learn that your firm is only able to invest $440,000 in funds for the next year, will this influence your decision? If so, what else would you wish to know before proceeding with a decision? (1 mark)