Questions 14-17 are based on the following information: A company has three factories in different locations. The disposal values of the factories are zero. The following information has been provided for each factory: Factory mm m Initial investment 40 70 100 Operating profit of factories before depreciation per annum: Year 60 Year 20 20 20 Year 20 10 Year 4 15 Depreciation is based on the straight-line method. The cost of capital is 10%. Discount factors are as follows: Year 1: 0.909 Year 2: 0.826 Year 3: 0.751 Year 4:0.683 14) Calculate the Net Present Value for factory B and choose the nearest value from the following options: a) 85m b) 5m c) 35m d 1m 15) Which factory has the shortest payback period? a) A b) B c) d) Both B and C 16) Which factory has negative net present value? a) A b) B e) C d) A and C 17) Using a discount rate of 15%, the Net Present Value of factory B is negative. Which of the followings about the internal rate of return (IRR) for factory B is correct? a) Higher than 15% b) Higher than 20% c) Lower than 15% d) Equal to 10%