A. Facts Enterprises is trying to select the best investment from among four alternative independent projects presented by their respective firms. Each alternative involves an initial outlay of $80,000 and a 10% cost of capital. Management requires that all project investments should be recovered in 4 years. Their cash flows follow: i) ii) Year Sun Ltd Moon Ltd Best Ltd Pep Ltd 30,000 20,000 20,500 0 25,000 30,000 20,500 30,000 3 20,000 0 20,500 0 4 15,000 20,000 20,500 28,000 5 10,000 10,000 20,500 25,000 6 5,000 30,000 40,000 Calculate each project's Payback Period. Based on the payback periods, which project(s) should they accept if the project(s) are independent. Which project(s) should they accept if the projects are mutually exclusive? 12 Marks Calculate each project's Net Present Value (NPV). Based on the NPVs, which project(s) should they accept if the project(s) are independent. Which project(s) should they accept if the projects are mutually exclusive? 20 Marks