Revaro is a highly geared company that wishes to expand its operations. Six possible capital investments have been identified, but the company only has access to a total of $620,000. The projects are not divisible and may not be postponed until a future period. After the projects end it is unlikely that similar investment opportunities will occur. Expected net cash inflows (including salvage value): Project Year 1 Year 2 Year 3 Year 4 Year 5 Initial Outlay A 70,000 70,000 70,000 70,000 70,000 246,000 B 75,000 87,000 64,000 180,000 C 48,000 48,000 63,000 73,000 175,000 D 62,000 62,000 62,000 62,000 180,000 E 40,000 50,000 60,000 70,000 40,000 180,000 F 35,000 82,000 82,000 150,000 Projects A and E are mutually exclusive. All projects are believed to be of similar risk to the companys existing capital investments. Any surplus funds may be invested in the money market to earn a return of 9% per year. The money market may be assumed to be an efficient market. Revaros cost of capital is 12% per annum. Required: A) Calculate the expected NPV for each of the six projects. B) Calculate the expected profitability index associated with each of the six projects. C) Rank the projects according to both of these investment appraisal methods. Explain briefly why these rankings differ. (3 x 4 marks = 12 marks) D) Give reasoned advice to Revaro recommending which projects should be selected. (8 marks)