(b) The directors of Maureen Company are considering two mutually exclusive investment projects. Both projects concern the purchase of a new plant. The following data are available for each project (Project Ivy and Project Sylvia): Ivy $-75,000 Sylvia $-55,000 Purchase cost of a plant (immediate outlay) Expected annual net operating cash flow: Year 1 Year 2 $27,000 $27,000 $27,000 $24,000 $12,000 $24,000 $36,000 $10,000 Year 3 Estimated residual value at the end of year 3 Required: For each project calculate: (i) The payback period and express it in years and months, assuming the net operating cash flows occur uniformly during the year and the residual values occur at the end of year 3. (4 marks) (ii) The net present value, assuming all annual operating cash flows occur at the end of each year and the weighted average cost of capital is 10%. (Round to the nearest dollar). (10 marks) (iii) State which of the two investment projects the directors of Maureen Company should select. Justify your answer using your calculations from (i) and (ii). (2 marks - Maximum of 40 words)