Daryi Keams saved $$240,000$ during the $30$ years that he worked for a major corporation. Now he has retired at the age of $60$ and has begun to diaw a comfortable penslon check every month. He wants to ensure the financial security of his retirement by investing his savings wisely and is currently considering two investment opportunitles. Both investments require an inibal payment of $$160,000.$ The following table presents the estimated cash inflows for the two alternatives:

$\backslash$table$[[,$Year I,Year $2,$Year $3,$Year $4],[$Opportunity $1,$$$44,$ bea,$547,298,$$$63,200,$$$88,898],[$Opportunity $2,81,68$a$,86,488,16,98,16,898]]$

Mr$.$ Kearns decides to use his past average return on mutual fund investments as the discount rate; it is $8$ percent. $($PV of $S1$ and PVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

Required

a$.$ Compute the nel present value of each opportunity. Which should Mr$.$ Kearns adopt based on the net present value approach?

b$.$ Compute the payback perlod for each project. Which should Mr$.$ Kearns adopt based on the payback approach?

Complete this question by entering your answers in the tabs below.