Imagine you are a financial analyst tasked with implementing a portfolio credit risk management strategy for a bank. Outline the specific techniques you would take to ensure effective risk mitigation and diversification within the portfolio.

XYZ Company Ltd. is considering to invest in a project. It has the following options :

Cash-flows

Cost of capital for both project is 10%, PV factor for 1st year is 0-90909, for 2nd year is 0-82645 and for 3rd year is 0-75131. On the basis of the above information, compute the following :

(i) Pay-back period for project 'A' and project 'B'.
(ii) NPV for project 'A' and project 'B'.
(iii) Which project should be considered according to NPV?