7. Arabian Nights Company is planning to spend on a new magic carpet ride in the next four years. After a round of discussions, management have identified two potential designs, i.e. Alif and Ba. Due to limited funds, management has decided to embark on only one project. The following information is available: Ba Year Initial 2018 2019 2020 2021 2022 Alif RM 35,000.00 5,000.00 16,000.00 22,000.00 (3,600.00) RM 35,000.00 16,000.00 23,000.00 12,000.00 11,600.00 Estimated scrap value at 31-Dec-22 5,000.00 5,000.00 The company's cost of capital is 14%. Required: (a) Calculate for both proposals: the payback period (2 marks) the average rate of return on initial investment (5 marks) the net present value (NPV) (10 marks)