The following information relates to three possible capital expenditure projects. Because of capital rationing only one project can be accepted. Initial Cost A RM200,000 Project B Useful Life Salvage Value Expected 5 years RM10,000 RM230,000 5 years RM15,000 RM180,000 4 years RM8,000 Expected Cash Inflows: Year 1 RM80,000 RM100,000 RM55,000 Year 2 RM70,000 RM70,000 RM65,000 Year 3 RM65,000 RM50,000 RM95,000 Year 4 RM60,000 RM50,000 RM100,000 Year 5 RM55,000 RM50,000 The company estimates its cost of capital is 18% and discount factors are: Year 1 0.847 Year 2 0.718 Year 3 0.609 Year 4 0.516 Year 5 0.437 Required: (a) Calculate the payback period for each project. (b) Calculate the accounting rate of return for each project. (c) Calculate the net present value of each project. (d) Which project should be accepted? Give reasons. (e) Explain the factors management would need to consider in addition to the financial factors before making a final decision on a project