. You are the CFO of Hi-Tech Ltd, which needs to make a capital budgeting decision to choose one of two (2) mutually exclusive projects (Project I, Project II) with the future cash flows presented in the table below:

	Project I	Project II
Cost	$450 000	$540 000
Future Cash Flows Year 1 Year 2 Year 3 Year 4	190 000 230 000 250 600 180 000	230 000 250 000 280 000 190 000

Required: Undertake the project evaluation and identify which project the company should choose using the following:

a) The Profitability Index method with the discount rate of 10%

b) The Payback Period (PBP) method with benchmark of maximum 2 years