Urgent

Question 5 The directors of Zhang Limited are considerng three alternative nvestment proposals detalls of which are as follows Project Arjun Project Bharat Project Charu E E Iribal investment 100 000 125.000 200 000 Net cash flows year 1 60 000 25.000 25,000 25,000 35 000 35 000 Net cash intons year 2 60.000 83,000 Nic cash flows year 3 35.000 Net cash inws year 4 25,000 35.000 30.000 25,000 Net cashions year 5 35.000 30.000 The company depreciates as assets on a straight line bass, assuming a lite of five years with no residual value at the end of that time. Required: a) Calculate Using the above information, for each of the projects Arjun and Bharat and Charu, 1 The Payback Porno 2 The Accounting Rate of Return The Net Present Values using a discount rate of 10% Note Extract of Prosent Value Mabios are on page 12 b) State with reasons which ONE of the two investment projects the directors of Kish Limited should accept Discuss why the Net Present Value method of investment appraisal is considered to be theoretically superior to other methods that are found in practice