(a) ATS Ltd, a manufacturer of theatre sound equipment, is considering the selection of one from two mutually exclusive investment projects, each with an estimated five-year life. It can develop one of two types of soundboard and associated equipment, one is more advanced and can support a large number and type of sound inputs (referred to as the "Major" board project while the second is simpler and cheaper (the "Minor" board project. The Major board project requires initial investment of 1,500,000 and is forecast to generate annual cash flows of 428,000. Its estimated residual value after five years is 200,000. The Minor board project costs 500,000 with a forecast scrap value of 50,000. The Minor board should generate annual cash flows of 148,000. The company operates a straight-line depreciation policy and discounts cash flows at 15 per cent p.a. ATS Ltd uses four investment appraisal techniques: payback period, net present value, internal rate of return and accounting rate of return (i.e. average accounting profit to average value of investment). Required Make the appropriate calculations using each of these four methodennte your investment advice with reasons. hint: For the IRR calculation there is no need to make multiple guessus io achieve more and more precision. It will be sufficient to use 15% and 20% for your upper and lower estimates for both the Major and Minor projects. (b) List the advantages and disadvantages of the following methods of investment appraisal: (i) Payback (ii) Accounting rate of return (ARR) (iii) Internal rate of return (IRR) (iv) Net present value (NPV)