Question Completion Status: utes, 19 seconds. Batelco Inc. is considering two mutually exclusive projects A and 1. Each project press as probat in die kolies vals life of the project A will be 6-Year's and Project B will be 5 years, and both projects carry same ruk die d the current economic situation Batelco Inc. has set a maximum payback period of 4 years and ministrs prepared estimates of the annual revenues and costs associated with each project an in the below 000 Cost of equipment Working Capital needed Projects A 240,000 60,000 Overhaal of the equipment in 12000 two years Annual revenues and costs: Sales revenues 375,000 30000 Variable expenses 150,000 90,000 60.000 14,000 Depreciation expense 90,000 Fixed out-of-pocket operating costs 6 year Life of Project The working capital will be released 6th and 5th year of the project A and project respectively, the invitats i e Required: 1. Calculate the net present value for each project. (4 Marks) 2. Calculate the simple rate of return for each product. (4 Marks) 3. Which of the two projects (if either) would you recommend that Batelco los accepe Why (2 Mark) project as in the below table: 4 years and minimum return on investment (RCR) VIN A c ne risk. Batelco Inc uses a discounts of 12% Aber un Cost of equipment Projects A Projects B 240,000 Working Capital needed 470,000 60,000 Overhaul of the equipment in 80,000 12000 14000 two years Annual revenues and costs: Sales revenues 375,000 Variable expenses 180,000 60,000 Depreciation expense 90,000 Fixed out-of-pocket operating 5 years costs 6 year Life of Project year of the project A and project B respectively, for investment elsewhere within the comm 300,000 90,000 74,000 70,000 eleased 6th and 5th. sent value for each project. (4 Marks) rate of return for each product. (4 Marks) jects (if either) would you recommend that Batelco Inc. accept? Why? (2 Mark)