4 Daryl Kearns saved $260,000 during the 25 years that he worked for a major corporation. Now he has retired at the age of 50 and has begun to draw a comfortable pension check every month. He wants to ensure the financial security of his retirement by investing his savings wisely and is currently considering two investment opportunities. Both investments require an initial payment of $190.500. The following table presents the estimated cash intlows for the two alternatives: Year 1 Year 2 Year Year 4 Opportunity #1 $ 55,675 5 58,920 $78,870 5101,420 Opportunity #2 103,000 109,300 18,100 14,700 BOOK Print elence Mt Keams decides to use his past average return on mutual fund investments as the discount rate: It is 8 percent. (PV of S1 and PVA O $1) (Use appropriate factor(s) from the tables provided) Required a. Compute the net present value of each opportunity. Which should Mr. Kearns adopt based on the net present value approach? b. Compute the payback period for each project. Which should Mr. Kearns acopt based on the payback approach? Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of each opportunity which should Mr. Kearns adopt based on the net present value approach (Round your intermediate calculations and not answer to two decimal places Net Present Value Opportunity Opportunity 2 Which opportunity should be choson? CRNA Required B > Daryl Kearns saved $260,000 during the 25 years that he worked for a major corporation. Now he has retired at the age of 50 and has begun to draw a comfortable pension check every month. He wants to ensure the financial security of his retirement by investing his savings wisely and is currently considering two investment opportunities. Both investments require an initial payment of $190,500. The following table presents the estimated cash inflows for the two alternatives: Year 1 Year 2 Year 3 Year 4 Opportunity 1 $ 55,675 $ 58,920 $78,870 $101,420 Opportunity 2 103,900 109,500 18,100 14,700 Mr. Kearns decides to use his past average return on mutual fund investments as the discount rate; It is 8 percent (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Required o. Compute the net present value of each opportunity, which should Mr. Kearns adopt based on the net present value approach? b. Compute the payback period for each project. Which should Mr. Kearns adopt based on the payback approach? Complete this question by entering your answers in the tabs below. Required A Required B Compute the payback period for each opportunity, which should Mr. Kearns adopt based on the payback approach? Opportunity 1 Opportunity 2 Which opportunity should be chosen? Payback Period years years