Question-1 VMG Company is considering investing in Project R, which will require an outlay of $800 million. The project will have a five-year life and at the end of that time, the equipment will be scrapped. The following information about two mutually exclusive projects R and T is relevant for requirements 1 (a) to 1 (c) only. The Project R is expected to generate the following annual cash flows: The company has a required rate of return of 14.18%. The company normally has three-year discounted payback criteria. Q1 (a) (i) NPV of the Project R Q1 (a) (1) NPV of the Project T Q1 (a) (ii) IRR of the Project R Q1 (a) (ii) IRR of the Project T Q1 (a) (iii) PVI of the Project R C1 (a) (iii) PVI of the Project T Q1 (a) (iv) Payback period of the Project R OI (a) (iv) Payback period of the Project T Q1 (a) (v) Discounted Payback period of the Project Q1 (a) (v) Discounted Payback period of the Project million (if the answer is 1,234,567.89, write only 51.23 ) million (if the onswer is 1.234 .567 .89 , write only 51 23) $( Write answer in $) - if the answer is 12.34%, write only 12.34 S(Write answer in N ) - if the answer is 12 .345, write onily 12.34 vears vears veats vears The alternative Project-T offers the following net cash flows: Year-0 (\$800m); Year-1 \$195m; Year-2 \$250m; Year-3 \$328m; Year-4 \$368m; and Year-5 $368m. (a) Calculate the (i) NPV, (ii) IRR, (iii) PVI, (iv) Payback period, ( v ) Discounted payback period for projects R and T. (b) Calculate the crossover rate (between projects R and T ) based on the above cash flow data. Show the range of required rates for which either Project-R or Project-T would be preferred. (c) Based on your findings in requirements a and b above, what would be the decision of selection of project (when the required rate of return is 14.18 percent)? a (b) Preterted pioject for rate below crossover rat ou (b) Preferted project for rate above crossover rat Q. (c). Pecomenended project at geven required rate Q1 (c) Heaton for above recommendation (Write enter zortan None) 1MNO