Q2. The Ambani has two alternative proposals under consideration. Project Ghee requires a capital outlay of Rs. 25,00,000 and Project Oil requires Rs. 50,00,000. Both are estimated to provide a cash flow for five years: Project Ghee Rs. 9,00,000 per year and Project Oil Rs. 17,50,000 per year. The cost of capital is 14%. Show which of the two projects is preferable from the view point of (i) Net present value method (5 marks) (ii) Profitability Index (5 marks)