1. Distinguish between payback and discounted payback period.2. As a student of finance, what is your biggest issue with using the payback period to make investmedecisions?3. List two (2) advantages and two (2) disadvantages of using NPV to decide between projects.Problem 1BioTech Industries is considering two mutually exclusive projects. The firm which has a 15% cost ofcapital, has estimated its cash flows as shown in the table below.PV Factor15%YearsABYears-350000-500001450002400010.8696650002200020.75613650001950030.657544400001460040.5718a) Calculate each project's discounted payback period.b) Calculate the Net Present Value (NPV) for each project.c) Indicate which project should be chosen and why?d) Calculate the Internal Rate of Return (IRR) for Project B given the IRR range is between 20% - 26%.e) Based on all the above findings, recommend the best project. Explain.

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1. Distinguish between payback and discounted payback period.

Principles of Accounting Volume 2

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Chapter11: Capital Budgeting Decisions

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Problem 4EB: Assume a company is going to make an investment in a machine of $825,000 and the following are the...

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Please see attached:
solve and show your solution and explanations.
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