Daryl Kearns saved $270,000 during the 25 years that he worked for a major corporation. Now he has retired at the age of 50 and has begun to draw a comfortable pension check every month. He wants to ensure the financial security of this retirement by investing his Savings wisely and is currently considering two investment opportunities. Both investments require an initial payment of $188,500. The following table presents the estimated cash inflows for the two alternatives: Yea 1 Year 2 Year Year Opportunity $ 55,610 50,00 570,090 5101.350 Opportunity #2 103.900 108,850 16,800 16.000 Mc Kearns decides to use his past average retum on mutual fund investments as the discount rate; it is 8 percent. Pot) and PVA of $1 (Use appropriate factor(s) from the tables provided.) Required a. Compute the net present value of each opportunity, which should Mr. Kearns adopt based on the net present value approach? b. Compute the payback period for each opportunity. Which should Mr. Kearns adopt based on the payback approach? Complete this question by entering your answers in the tabs below. Required Required B Compute the net present value of each opportunity, which should Mc Kearns adopt based on the net present value approach? (Round your intermediate calculations and final answer to two decimal places.) Net Present Value Opportunity 1 Opportunity 2 Which opportunity should be chosen? RA Required B ker Opportunity Opportunity 2 355,630 103.900 38,090 100, 850 Year $70,090 16.000 Year 4 0101,350 16,000 Mt. Kearns decides to use his past average return on mutual fund investments as the discount rate; it is 8 percent. PV of 51 and PVA of 51) (Use appropriate factor(s) from the tables provided) Required a. Compute the net present value of each opportunity. Which should Mr Kearns adopt based on the net present value approach? b. Compute the payback period for each opportunity, which should Mr. Kearns adopt based on the payback approach? Petrece Complete this question by entering your answers in the tabs below. Required a nedured B Compute the payback period for each opportunity, which should Mr. Kearns adopt based on the payback approach? Opportunity 1 Opportunity 2 Which opportunity should be chosen? Payback Period years years