Daryl Kearns saved $280,000 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 his retirement by investing his savings wisely and is currently considering two investment opportunities. Both investments require an Initial payment of $190,000. The following table presents the estimated cash Inflows for the two alternatives Year 1 Year 2 Year 3 Year 4 $78,780 $ 55,710 Opportunity #1 S58,940 109,450 $101, 390 14,600 Opportunity #2 103,40e 18,100 Mr. Kearns decides to use his past average retuun on mutual fund Investments as the discount rate, It is 9 percent. PV of $1 and PVA of $1) (Use approprlate 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? ces Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of each opportunity. Which should Mr. 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? Reqied A Required B> Complete this question by entering your answers in the tabs below. Required E Required A Compute the payback period for each opportunity. Which should Mr. Kearns adopt based on the payback approach? Payback Period Opportunity 1 Opportunity 2 Which opportunity should be chosen? Required A equied TABLE 1 PRESENT VALUE OF $1 4% 5% 6% 20 % 7% 8% 9% 10% 12% 14% 16% 0.961538 0.952381 0.943396 1 0.934579 0.925926 0.917431 0.909091 0.892857 0.877193 0.862069 0.833333 0.924556 0.907029 0.889996 2 0.873439 0.857339 0.841680 0.82644 0.769468 0.797194 0.743163 0.694444 3 0.888996 0.816298 0.863838 0.839619 0.793832 0772183 0751315 0.711780 0.674972 0.640658 0.578704 4 0.854804 0.822702 0.792094 0.762895 0.735030 0708425 0.635518 0.592080 0.683013 0.552291 0.482253 0.821927 5 0783526 0747258 0712986 0.680583 0.649931 0.620921 0.567427 0.519369 0.476113 0.401878 6 0.790315 0746215 0.666342 0710681 0,665057 0.622750 0.583490 0.704961 0.630170 0.596267 0.564474 0.506631 0.455587 0.410442 0.334898 7 0.759918 0.547034 0.513158 0452349 0.399637 0.353830 0.279082 0730690 0.676839 0.627412 0.582009 0.540269 0.466507 0403883 0.350559 0.305025 0.501866 0.232568 0702587 0.644609 0.591898 0.543934 0.500249 0.460428 0424098 0.360610 0.307508 0.262953 0.193807 10 0.675564 0.613913 0.558395 0.508349 0.463193 0422411 0.385543 0.321973 0.269744 0.226684 0.161506 11 0.649581 0.584679 0.526788 0.475093 0.428883 0.387533 0.350494 0.287476 0.236617 0.195417 0.134588 12 0.624597 0.556837 0.496969 0.444012 0.397114 0.355535 0.318631 0.256675 0.207559 0.168463 0.112157 13 0.600574 0.530321 0.468839 0.414964 0.367698 0.326179 0.289664 0.229174 0.182069 0.145227 0.093464 14 0.577475 0.505068 0.442301 0.340461 0.299246 0.387817 0.263331 0.204620 0159710 0.125195 0.077887 15 0.555265 0.481017 0.417265 0.362446 0.315242 0274538 0.239392 0.182696 0140096 0.107927 0.064905 0.533908 16 0.458112 0.338735 0.393646 0.291890 0.251870 0.217629 0.163122 0.122892 0.093041 0.054088 17 0.513373 0.436297 0.371364 0.316574 0.270269 0.231073 0.197845 0.145644 0.107800 0.080207 0.045073 18 0.493628 0.415521 0.350344 0.295864 0.250249 0.211994 0179859 0130040 0.094561 0.069144 0.037561 19 0.474642 0.395734 0.330513 0.276508 0.231712 0.194490 0.163508 0.116107 0.082948 0.059607 0.031301 20 0.456387 0.376889 0.311805 0.258419 0178431 0.214548 0.148644 0.103667 0.072762 0.051385 0.026084 TABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 4% 5% 6% 7% 8% 9% 10% 12% 14% 16% 20% 0.961538 0.952381 0.943396 0.934579 0.925926 0.909091 0.917431 0.892857 0.877193 0.862069 0.833333 2 1859410 1.886095 1.833393 1.808018 1783265 1.759111 1.735537 M690051 1.646661 1605232 1.527778 3 2.775091 2.723248 2.673012 2.624316 2.577097 2.531295 2.486852 2.321632 2.245890 2.401831 2.106481 4 3.629895 3.545951 3.465106 3.387211 3.312127 3.239720 2.798181 2.588735 3.169865 3.037349 2.913712 5 4.451822 4.329477 4.212364 4.100197 3.992710 3.889651 3.790787 3.604776 3.433081 3.274294 2.990612 6 5.242137 5.075692 4.917324 4.766540 4.622880 4.485919 4.355261 4.111407 3.888668 3.684736 3.325510 5582381 7 6.002055 5.786373 5.389289 5.206370 4.868419 4.288305 4.038565 3.604592 5.032953 4.563757 5.534819 5.334926 4.967640 8 6.732745 6.463213 6.209794 5.971299 5.746639 3.837160 4.638864 4.343591 9 7435332 7107822 6.801692 6.515232 6.246888 5.759024 4.606544 4.030967 5.995247 5.328250 4.946372 10 8.110896 7721735 7.360087 7.023582 6.710081 6.417658 6.144567 5.650223 5.216116 4.833227 4.192472 8.760477 8.306414 11 7.886875 7498674 7138964 5.452733 5.028644 4.327060 6.805191 6.495061 5.937699 12 9.385074 8.863252 7942686 8.383844 6.194374 5.660292 7536078 7160725 6.813692 5.197107 4.439217 13 9.985648 9.393573 8.852683 8.357651 7903776 7486904 7103356 5.842362 5.342334 4.532681 6.423548 14 10.563123 9.294984 9.898641 8.745468 8.244237 7786150 7366687 6.628168 6.002072 5.467529 4.610567 15 11.118387 10.379658 9.712249 9.107914 8.559479 8.060688 7606080 6.810864 6.142168 5.575456 4.675473 16 11.652296 10.837770 4.729561 10.105895 9.446649 8.851369 8.312558 7823709 6.973986 6.265060 5.668497 7119630 6.372859 6.467420 17 11.274066 10.477260 9.763223 9121638 8.543631 8.021553 12.165669 5.748704 4.774634 18 12.659297 11.689587 10.827603 10.059087 9.371887 8755625 8.201412 7249670 5.817848 4.812195 8.905115 8.364920 11.158116 10.335595 9.603599 7365777 6.550369 19 13.133939 12.085321 5.877455 4.843496 5.928841 4.869580 11.469921 10.594014 9.818147 9128546 8.513564 7469444 6.623131 13.590326 12.462210 20