Table of Discount Factors Rate percent Year 1 4.5 5.0 0.9569378 0.9523810 5.5 0.9478673 0.9433962 6.0 2 0.9157300 0.9070295 0.8984524 0.8899964 3 0.8762966 0.8638376 0.8516137 0.8396193 4 0.8385613 0.8227025 0.8072167 0.7920937 5 0.8024510 0.7835262 0.7651344 0.7472582 REQUIRED: a) Using appropriate project appraisal techniques assess and demonstrate the financial viability of each project. b) Evaluate the methods of investment appraisal completed in part (a). Recommend the most appropriate project for the business. LO3 Assessment Criteria 3.3 Extension Activity To achieve a Distinction your written work must also evaluate the benefits of management accounting techniques in supporting financial decision making to ensure long term financial stability. LO3 3D1 Your line manager has been pleased with your work to date and has invited you to a meeting with the Marketing Director. The Marketing team has completed research on a number of projects to encourage customers to return to the stores. Your line manager has asked for your written comments on the financial viability of four projects. The costs associated with each project are as follows: Project A Project B Project C Project D Initial Cost (Year 0) 675,000 425,000 690,000 570,000 Expected Cash Flows Year 1 125,000 110,000 155,000 30,000 Year 2 180,000 60,000 210,000 75,000 Year 3 215,000 80,000 235,000 155,000 Year 4 160,000 95,000 150,000 185,000 Year 5 85,000 205,000 20,000 115,000