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

Project $1-$ initial outlay $$48m$ with an expected cash inflow of yr $1-$$$16m,$ yr $2-$$$20m,yr3-$$$18m,yr4-$ $$17m$ and year $5$$$10m$

Project $2-$ initial outlay $$$50m$ with an expected cash inflow of yr $1-$$$17m,$ yr $2-$$$22m,$ year $3-$$$20m,$ year $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