Question 1:The financial manager is evaluating two new projects. The firm has a cost of capital of 8%.The two projects are expected to have the following cash flows:Year Project A (R) Project B (R)1 -50 000 -80 0002 20 000 40 0003 30 000 30 0004 10 000 30 000Calculate the payback period for both projects and choose the correct option indicating the payback periods and which project should be selected based on the payback period. A. A: 3 years, B: 3 years, accept neither of the projectsB. A: 2 years, B: 2,3 years, accept project AC. A: 3 years, B: 3 years, accept both projectsD. A: 2 years, B: 2,3 years, accept project BQuestion 2A manufacturing firm uses 540 units of raw materials in its production processes each day.It takes five days from placing an order until delivery is received. The firm always keeps safety stock of 400 units of raw material on hand. What is the firm’s reorder point?A. 508 units B. 2 700 units C. 3 100 units D. 940 units