Lumbini Hotel is considering including two pieces of equipment, a truck and an overhead pulley system, in current capital budget. The projects are not mutually exclusive. The cash outlay for the…

Lumbini Hotel is considering including two pieces of equipment, a truck and an overhead pulley system, in current capital budget. The projects are not mutually exclusive. The cash outlay for the truck is Rs 17,000 and that for the pulley system is Rs 23,000. The firm's cost of capital is 14 percent. Cash flow after tax (CFAT) from the equipment's are as follows: YearTruckPulley1Rs 10,000Rs 15,000210,00015,000310,00015,000 Calculate the payback period (PBP) Net present value (NPV) and internal rate of return (IRR) for each project. Which alternative or alternatives would you recommend? Why?