The fross company is looking to invest in two projects, the following is the information

Project 1 -initial outlay $48m with cash inflow of yr 1 - $16m, yr 2 - 20m, yr 3 - $18m, yr 4 - $17m and yr 5 - 16m

Project 2 - initial outlay $50m with an expected cash inflow of yr 1 - $17m, yr 2 - $22m, yr 3 - $20m, yr 4 - $15m and year 5 - $16m. interest rate 7% from the following information calculate the following a. Payback period b. ARR c. NPV d. Profitability index e. State which project should be chosen and why