20. Bottle plc manufactures eco-friendly drinking bottles. The company is considering various investment projects that should help improve their products. They have shortlisted three projects and asked you to recommend the best option. They provided you with the following information about the projects: • Project I will last for 3 years. The initial outlay is £400,000 and the expected cash flow originating from the project is £200,000 for the first 2 years of the project and £60,000 in the last year of the project life. • Project Il will last for 3 years. The initial outlay is £350,000 and the expected cash flow originating from the project is £180,000 for the first 2 years of the project and £200,000 in the last year of the project life. Project III will last for 4 years. The initial outlay is £380,000 and the expected cash flow originating from the project is £150,000 in the first 2 years and then increase by £60,000 in year 3 and stay at that level until the end of the project life. Current cost of capital is 20%. Required (a) Evaluate each of the three projects using Payback Period. (b) Evaluate each of the three projects using Net Present Value. (c) Explain which projects should be accepted and why.