Sapphire Project and Jade Project of equal risk are alternative for expanding Sinaran Company Capacity. The firms cost of capital is 13%. The initial investment and cash flows associated with these projects are shown in the following table. No Handwriting Please Initial Investment (CF.) Sapphire Project Jade Project Year (c) Cash inflows (CF) RM -365,000 -40,000 0 1 38,000 20,300 2 47,000 15,200 3 62,000 14,100 4 455,000 11,200 a) Calculate the payback period for each project. Which investment will you choose? Why? (5 marks) b) Calculate the net present value (NPV) for each project. Which investment will you choose? Why? (8 marks) c) Calculate the profitability Index (PI) for each project. Which investment will you choose? Why? (5 marks) d) Based on your answers in (a) through (c), which project will you finally choose? Explain why? (2 marks) [Total: 20 marks]