Year 0 1 2 3 Question 1 (20 marks) You are considering the following two mutually exclusive investment projects: Project A Project B -$375,000 -$375,000 $121,125 $48,675 $140,175 $114,000 $60,000 $229,875 4 $218,485 $144,165 Whichever project you choose, if any, you require a 10% return per year on your investment. Please show your calculations clearly for parts (a) to (c) below. (a) If you apply the payback decision rule, which project will you choose if the company's targeted payback period is 3 years? Explain. (5 marks) (b) If you apply the discounted payback decision rule, which project will you choose if the company's targeted discounted payback period is 3 years? Explain. (5 marks) () If you apply the NPV decision rule, which project will you choose? Explain. (7 marks) (d) Based on your answers of (a) to (c), which project should you choose? Explain