QUESTION FOUR [13] The directors of Akazi Investments Limited are considering two mutually exclusive projects. Both projects are concerned with the purchase of land for building later on. The cost of capital on each project is 10% Discount Period Project A Project B Factor 0 100 000 Initial outlay Cash inflows 1 2 3 60 000 30 000 40 000 60 000 1 36 000 0,909 16 000 0,826 28 000 0,751 Required Calculate the net present value of each of the projects and state which of two projects should the directors accept and why. (13) END OF QUESTION PAPER