You are a financial analyst working for a large investment firm. Your boss has asked you to evaluate two different business proposals. Proposal A requires a $$500,000$ initial investment and is projected to attain a cash flow stream of $$100,000$ each year for the next seven years. Proposal B has an initial outlay of $$700,000,$ a much higher funding required, but will be able to produce almost $$150,000$ per year, and for only the next five years. Assuming cost of capital is at $8\%$ for the company.

a$.$ Evaluate each project using the Net Present Value $($NPV$)$ method. State one advantage and one disadvantage of using NPV as a project evaluation tool. $(4$ marks$)$

b$.$ Using the same projects as listed above, Evaluate each project again, using Internal Rate of Return $($IRR$).$ State one advantage and one disadvantage of using IRR as a project evaluation tool. $(4$ marks$)$

c$.$ Evaluate each project again, using payback $($PB$)$ period. State one advantage and one disadvantage of using PB as a project evaluation tool. $(4$ marks$)$

d$.$ Discuss these three methods listed above based on the answers from $($a$)$ to $($c$).$ Be sure to assess each of its merits compared to each other by assuming some other additional variables you believe are more important. For instance, you can consider evaluating these methods if the cash flow stream varies $($more in earlier years vs later years$)$; lump sum cash flow in farther years out; high cash flow but low probability; and so on$.(18$ marks$)$