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The fross company is looking to invest in two projects, the following is the information:...

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Accounting

The fross company is looking to invest in two projects, the following is the information:
Project 1- initial outlay $48m with an expected cash inflow of yr 1-$16m, yr 2-$20m,yr3-$18m,yr4- $17m and year 5$10m
Project 2- initial outlay $$50m with an expected cash inflow of yr 1-$17m, yr 2-$22m, year 3-$20m, year 4-$15m and year 5-$16m.
Interest rate 7%
From the following information calculate the following:
a. Payback period
b. ARR
c. NPV
d. Profitability index
e. State which project should be chosen and why
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