(b) LONGHORN CORPORATION has two investment alternatives, E and f. As a result of capital rationing, management is considering which project they should undertake. The following table provides management with the relevant financial information pertaining to the projects

COST. PROJECT E Ksh millions (15,000), PROJECT F. Ksh millions(15000)
NET CASH FLOW Pa. Project E ksh millions (5500), project F ksh millions (3200)
LIFE. Project E ksh millions (4 YEARS)
Project F ksh millions (8 YEARS)
COST OF CAPITAL. Project E ksh millions (12%), Project F ksh millions (12%)
You are required to calculate the following and give your verdict if the two projects are MUTUALLY EXCLUSIVE and INDEPENDENT.

L. PAYBACK PERIOD OF EACH PROJECT. (2MKS)

2DISCOUNTED PAYBACK PERIOD OF EACH PROJECT. (4MKS)

3.ACCOUNTING RATE OF RETURN OF EACH PROJECT. (2MKS)

4 NET PRESENT VALUE OF EACH PROJECT. (6MKS)

5.PROFITABILITY INDEX OF EACH PROJECT. (3MKS)

6.INTERNAL RATE OF RETURN OF EACH PROJECT. (8MKS)