You are analyzing two proposed capital investments. Projects A and B. Each project has a cost of Rs 2,000,000, and the cost of capital for each project is 12 percent. The projects' expected net cash…

You are analyzing two proposed capital investments. Projects A and B. Each project has a cost of Rs 2,000,000, and the cost of capital for each project is 12 percent. The projects' expected net cash flows are as follows: YearExpected Net Cash FlowProject AProject B1Rs 1,000,000Rs 1,500,00021,000,0001,000,00031,000,000500,000 a. What do you mean by capital budgeting decision? b. Calculate payback period. Which one project is better on the basis of payback period? c. Calculate net present value (NPV). Which one project or projects would you accept if these projects are independent? Mutually exclusive?