Consider the following two investment projects: Year Investment A end of year cash flows Investment B end of year cash f

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Consider the following two investment projects:
Year
Investment A end of year cash flows
Investment B end of year cash flows
2022
+$200,000
+$100,000
2023
+400,000
+100,000
2024
+400,000
+100,000
2025
+400,000
+800,000
2026
+600,000
+1,000,000
Both projects require an investment of $1,000,000 at the end of
2021. The required rate of return for both projects is 10%.
Required
Prepare a report to the CEO of the company comparing both
projects and providing a recommendation based on your
analysis. Your report should include the following :
Part 1
Evaluating and comparing both projects using all of the
following techniques:
a. Payback period
b. Discounted payback period
c. Net present value
d. Internal rate of return
Note: you will need to show all relevant calculation and
explain your findings for each method
Part 2
The CEO is very concerned about the rising inflation rate in
Canada and would like to understand in a small paragraph ( 4 to 5
sentences) how would this impact the decision to invest.
Part 3
The CEO would like to know why did the analysis excluded
financing costs.