Romeich Major graduated from Mona School of Business and has been a Junior Financial Analyst at Proven Investment Ltd. When he arrived at work this morming, he found the following memo in his e-mail....

Please Answer sub-parts D,E & F

Thnak you.

Extracted text: Romeich Major graduated from Mona School of Business and has been a Junior Financial Analyst at Proven Investment Ltd. When he arrived at work this morming, he found the following memo in his e-mail. TO: Romeich Major FROM: J. C. Bens, CFO, Proven Investment Ltd. RE: Capital Budgeting Analysis Provide evaluation of the two proposed projects whose cash flow forecasts are found below: Product A Product B Initial cost $750,000 $650,000 Expected life 5 уears 5 years Scrap value expected 2$ $35,000 Others expected cash inflows: Year %24 1 180,000 200,000 300,000 240,000 3 230,000 210,000 4 330,000 260,000 5 195,000 155,000 The company cost of capital for each project is 13 percent. The company relies on several criteria when evaluating new investment opportunities. The projects are independent. Give me your thoughts on these three projects by May 20, 2022. Romeich was not surprised by the memo, for she had been expecting something like this for some time now. After re-reading the memo, Romeich decided on her plan of action and made up the following to do list: A. Compute the ARR for each project B. Compute the payback period for each project C. Compute the Net Present Value (NPV) for each project D. Compute the Internal Rate of Retum (IRR) for each project E. Compute the Profitability Index (PI) for each project Prepare Romeich's assignment for her meeting with the CFO by completing her to-do list above. Bear in mind that the projects are independent. What is your recommendation to the firm? Justify your response