Daryl Kearns saved $300,000 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 $192,500. The following table presents the estimated cash inflows for the two alternatives: Opportunity Opportunity 2 Year 1 $ 55,700 103,900 Year 2 $ 58,860 109.100 Year 3 $78,920 17,000 Year 4 6101,350 15.400 Mr. Kearns decides to use his past average return on mutual fund investments as the discount rate; it is 9 percent. (PV of S1 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 project. Which should Mr. Kearns adopt based on the payback approach? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B TABLE 1 PRESENT VALUE OF $1 N 1600 9668SSO ESTUSED GOSLOLO 45 5% 6% 7 89 94 10% 120 145 16% 1 20% 0.961538 0.952381 0.943396 0.934579 0.925926 0.917431 0909091 0892857 0.077193 0.862060 0924556 0.533333 0.907029 0.899996 0.073439 0.857339 0.341680 0.826416 0.707104 0.769.463 0.743160 3 0.863338 0.839619 0.816295 0.793832 0.772183 0.751315 0.721790 0674972 0.640653 6578704 . 0.854804 0.822702 0.792094 0.762895 0.735030 0.708425 0.683013 0.635518 0.992000 0552291 0.321927 0.783526 0747253 0.712936 0.000533 0.6-19931 0620921 0567422 0519300 0476113 0,401873 6 0.7903TS 0.746215 0 704961 0.660342 0630170 0.590267 0.561474 0 506631 0.455587 0410142 0.331593 7. 0.759913 0.710681 0.065057 0.022750 0.583.190 0.547034 0.513150 0 452349 0.399637 03338300279052 3 0.730690 0.676339 0.627412 0:582009 0.540269 0.501866 0466507 010333 0.350550 osoas 0232563 9 0.702587 0644609 0.591698 0.543934 0.500249 0.460423 0.424093 04360510 0 0.262953 0.193807 10 0.67556 0.613913 0 553395 0.505349 0.463193 0.422411 0.385543 0.321973 0.269744 070684 161506 0.649581 0.554679 0 526788 0.475093 0.428883 0.387533 0350494 028776 0236617 0195412 12 0.624597 0556037 0496969 0.444012 0.397114 0.355535 0315631 0250023 0 207559 0.168403 0 112157 13 0600574 0 530321 0.414964 0463339 0289663 0.367008 0.326179 0229174 0 15200 0093464 14 0.577475 0.505065 0.337817 0.30.161 0.299246 0263331 0.201620 01307100135195 0.07757 15 0.555265 0.1093 0061905 0.4301017 0.315242027535 0219392 0417265 0.362416 O 01.10090 10 0.393616 0.533905 0,455112 0335735 0.291590 0.251970 0.132892 0 217619 0.0950:1 0.16.12 0197545 0101000 0645073 17 0270260 0231073 0:5133730436297 0.371361 031057a 0 130010 000136 0000114 0.25024902110010179359 0037561 13 0.4936280415521 0.295561 0052945 0050607 0.031.01 20 RASION 0.194.190 01635000 11607 SSSTELO 11 LTESTO TOECITO 069701 SOCO TOTO LOCODOTTI TEOSCO ABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 3 3 1 2 3 4 5 6 17 4 0.961538 1.586095 2.775091 3.629995 4 451822 5.242137 6.002055 6.732745 7.435332 SA110596 8.760477 9.395074 9.985645 10 563123 11.118387 11 652296 12165669 12.659297 13.133939 13.590326 59 0.952381 1 359410 2.723248 3.545951 4.329477 5.075692 5.786373 6.463213 7107822 721735 8:306414 S.563252 9.393573 9.893641 10.379658 10 837770 11 274066 11.699587 12005321 12.462210 6% 0943396 1.833393 2673012 3.465106 4.212364 4.917324 5.582351 6 209794 6.S01692 7.360037 7.586875 8.383844 3.352653 9.29.1934 9.712249 10.105995 10477260 10 527603 1155116 1469921 7% 8% 9% 0.934579 0.925926 0.917431 1.808018 1.783265 1.759111 2.624316 2.577097 2.531295 3.387211 3.312127 3.239720 4.100197 3.992710 3.889651 4.766540 4.622880 4.485919 5.399289 5.206370 5.032953 5.971299 5.746639 5.534819 6.515232 6.246SSS 3.995247 7.023532 6.710081 6.417655 7.498674 7.138964 6.805191 7.942686 7.536078 7.160725 S.357651 7903776 7.486904 5.745163 8.244237 7.756150 9.107914 8.559479 5.000635 9116649 S.351369 S.312555 9.763223 9.121638 3 543631 10.059057 9.371837 8.755625 10-335595 9.603599 8.905115 10. 59.2014 9.315:17 9.125516 10% 0.909091 1735537 2.456852 3.169565 3.790737 4.355261 4868419 5.334926 5.759024 6.144567 6.495001 6.813692 7.103356 7.366637 7.606080 7.523709 5. 021553 3.201412 3.361920 1.513564 124 14% 16% 20% 0.892857 0.877193 0.562069 0.833333 1.690051 1.646661 1.605232 1.527778 2.401831 2.321632 2.245890 2.106431 3.037349 2.913712 2.798181 2.585735 3.004776 3.433031 3.274294 2.990612 4.111407 3.888665 3.634736 3.325510 4.563757 4.289305 4 033565 7604592 4.967640 4.638864 4.343591 3.837 160 5.328250 4946372 4.606544 4.030967 5.650223 5216116 4.533227 4.192472 5.937699 6.452733 5.025644 4,327000 6.194374 5.660292 5.197107 4.139217 6.423545 3.642362 5.342334 532631 6.628165 6.000072 5.467529 4.610567 6.S10864 0.142168 5.575456 4.675473 63973986 0.265060 5.668497 1.729561 7.119630 6.372350 5.748704 4.774634 7.219670 616720 5.617515 4.312193 7.3657776.550369 5.577455 4.943490 7.469.14. 6,023130 S 925341 1.869580 19 20 your Calc Opportunity 1 Opportunity 2 Which opportunity should be chosen