You are required to write a short report to the GE Healthcare companys Management:

1. Please select a relevant one method for Project A and B respectively among five investment criteria of Net Present Value (NPV), Equivalent Annual Cost (EAC), profitability Index (PI), Internal Rate of Return (IRR), Simple Payback Period, and Discounted Payback Period, given the market required rate of return for all project is 9.5% and the companys benchmark of payback is maximum 3 years.

Your recommendation must include your justification on why you choose the specific method based on its pros and cons compared to other methods. (Note: you cannot use the same method for both projects)

Assume that your group is working in the Financial Department of a GE Healthcare company that produces health care tools and equipment. This company is considering two potential projects as follow: Project 1: launching a new product of hearing aids. Your supplier offers you two options that have different cash outlay and generate different revenue but the same useful life of 5 years. The table below shows the estimated data available to the company's Management: Option A Option B Initial Investment 1,205,000 1,315,000 Annual Cash Flow Year 1 290,000 315,000 Year 2 320,000 345,000 Year 3 360,000 356,000 Year 4 375,000 402,000 Year 5 480,000 540,000 Project 2: Buying a new assembly for wheelchair production. Your company is offered two options that will generate the same revenue for each year. The table below shows the initial and annual costs for each option. Option A Option B Initial Investment 1,550,000 1,750,000 The annual cost, including fuel, maintaining, and other relevant expenses Year 1 42,000 35,000 Year 2 42,000 35,000 Year 3 42,000 35,000 Year 3 42,000 35,000 Year 5 35,000 You are required to write a short report to the GE Healthcare company's Management: Assume that your group is working in the Financial Department of a GE Healthcare company that produces health care tools and equipment. This company is considering two potential projects as follow: Project 1: launching a new product of hearing aids. Your supplier offers you two options that have different cash outlay and generate different revenue but the same useful life of 5 years. The table below shows the estimated data available to the company's Management: Option A Option B Initial Investment 1,205,000 1,315,000 Annual Cash Flow Year 1 290,000 315,000 Year 2 320,000 345,000 Year 3 360,000 356,000 Year 4 375,000 402,000 Year 5 480,000 540,000 Project 2: Buying a new assembly for wheelchair production. Your company is offered two options that will generate the same revenue for each year. The table below shows the initial and annual costs for each option. Option A Option B Initial Investment 1,550,000 1,750,000 The annual cost, including fuel, maintaining, and other relevant expenses Year 1 42,000 35,000 Year 2 42,000 35,000 Year 3 42,000 35,000 Year 3 42,000 35,000 Year 5 35,000 You are required to write a short report to the GE Healthcare company's Management