two opportunities is presented below. (All figures in 0 1 Year Initial Investment Net annual cash inflow 2 Net annual cash inflow 3 Net annual cash inflow 4 Net annual cash inflow 5 Net annual cash inflow (100,000) 3,000 72,000 8,000 24,000 50,000 B (150,000) 48,000 48,000 48,000 48,000 120,000 LD Tears and Residual Value of Asset at time 5 20,000 25,000 Aisha's discount rate representing the time value of money is 12%, payback target is equal to 3 their ROI target is 30%. Discount Factors at 12% Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 0.8929 0.7972 0.7118 0.6355 0.5674 1 Required: (a) Calculate the Return on Investment (ROI) (based on the Average Investment) for both projects. (2 marks) (b) Calculate the Payback period for both projects. (2 marks) (e) Calculate the Net Present Value (NPV) for both projects. (4 marks) (a) Calculate the Profitability Index (PI) for both projects. (2 marks) (e) Explain the meaning of all your results above and provide a justified recommendation to Aisha as to which of the two projects should be undertaken, taking in to consideration the merits and demerits of each method as applied to this scenario. (10 marks) WORD COUNT GUIDANCE: 300 WORDS+/-10%