Your division is considering two projects. The required rate of return for both projects is 12%. Below are the cash flows of both the projects:         Projects Initial investment Year 1 Year 2 Year 3 Year 4 A         -$50 $7 $12 $17 $25 B -$50 $20 $18 $12 $11 a) Calculate the Payback period and discounted payback period. Why are they different?  b) Calculate the NPV for both the projects c) Calculate the NPV for both the projec

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A:

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A: Formula used is as  follows.

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A: There are 3 questions answers will be provided step by step.

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.