William Johnson has recently graduated from a local community college in upstate New York. He is also the owner of \"Lawn-Pro\Required: (Ignore income taxes.) a) b} (4 marks) For each of the alternatives, conduct NPV and IR analyses. Based on these quantitative analyses, please advise William on which machine to select. (Note: ONLY IF you are using the present value tables for calculating IRR, as a simplifying assumption you can assume that the annual cash inows for John Deere will be $8,142 equal per year. This assumption can be used only for John Deere IRR calculation and not for any other part of this question. If you are using Excel or your calculator, please proceed with the data given in the table above.) (5 marks) Briey explain the limitations of NPV and [RR analyses each. Suggest a potential metric that mitigates these limitations (and explain how it mitigates any limitations of NPV and IR). Calculate this metric for both the alternatives and advise William on which machine to select. (4 marks) Calculate and compare the Payback Period for both the alternatives. Based on this metric, please advise William on which machine to select. Explain briey the pros and cons of using Payback Period to evaluate capital projects. (3 marks) Are there any other qualitative or not immediately quantiable factors that could inuence the capital budgeting analyses? Suggest at least three such factors that William should consider. (2 marks) William's sister (a third-year commerce student) happens to look over the capital budgeting metrics you have just calculated. She looks specically at the impressive IRR for both the machines and says that: \"With returns so good I almost feel like dropping out of college and pursuing lawncare as a full-time profession. Instead of one, I will buy 10 lawn mowers. With the help of friends and family, we can have a very successll business with returns that would be the envy of high yers in the nance industry! 1\" Advise William's sister on whether dropping out of college based on William's IRR estimates is in her best interests. (2 mark) Mr. CPA recalls reading in the Wall Street Magazine about a recent government initiative that allows complete and immediate expensing of capital expenditure for tax reporting purposes by small businesses, to help spur capital investment activity in the U.S. But he also recalls his management accounting professor saying that how capital expenditure is allocated over future time periods (i.e., depreciation expense) for nancial accounting purposes is not relevant. Can you help resolve Mr. CPA's confusion