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 hos 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 Year Year 2 Year YEE 4 Opportunity 2 $ 55,700 $ 58,060 $78,920 0101,350 Opportunity 2 103,900 109,100 17,800 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 $1 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? Complete this question by entering your answers in the tabs below. Required A Required B TABLE 1 PRESENT VALUE OF $1 21 1 2 3 4 5 6 7 S 9 10 49 0.961535 0.924556 0.888996 0.854804 0.321927 0.790315 0.759918 0.730690 0.702587 0.675564 0.649581 0.624597 0.600574 0.577475 0.555265 0.53390S 0.513373 0.493628 0.474642 0.456357 5% 0.952381 0.907029 0.863835 0.322702 0.733526 0.746215 0.710651 0.676839 0.614009 0.613913 0.584679 0.556837 0.530321 0:505065 0.481017 0.4455112 0.436297 0.415521 0.395734 0 376859 6% 0.913396 0.989996 0.839619 0.792094 0.747258 0.704961 0.665057 0.627412 0.591898 0.558395 0.526788 0.196969 0.468839 0.442301 0.017265 0.393616 0.371361 0.350344 0.330513 0.311805 79 0.934579 0.873439 0.816295 0.762895 0.712936 0.006342 0.622750 0.582009 0.543934 0.503349 0.475093 0.444012 0.414964 0.387817 0.362446 0.335735 0.316574 0.295564 0.276503 0.255419 8 9 10% 12 14% 165 0.9259260.917431 20% 0.909091 0.892857 0.377193 0.562069 0.857339 0.333333 0.841630 0.326446 0.792194 0.769.168 0.743163 0.691444 0.793832 0.772193 0.751315 0.7117300674972 0.610658 0.578703 0.735030 0.703425 0.633013 063551305920500.55229) 0.482250 0.630583 0.6.19931 0.620921 0.567422 0.519369 0.476113 0.401878 0.630170 0.596267 0.561474 0 506631 0.455557 0.410142 0334595 0.533490 0.547034 0.513155 0.452349 0.399637 0.353330 0.279032 0.540269 0.501566 0:466507 0.403553 0.J50559 0.305025 0232566 0.500249 0.160428 0.44098 0.360610 0.307503 0262953 0193307 0.463193 0422411 0385583 0.321973 0.269744 0 226684 0.161506 0.428893 0.387533 0.350194 0.257476 0.236617 0.1954170134553 0.397114 0 355535 0313631 0.256075 0 207559 0.163463 0.112157 0 367695 0.326179 0,259664 0229174 0.192069 0.145222 0 093464 0.340461 0,209246 0.263331 0.201620 0.159710 0.125195 0.077997 0.315242 0.274539 0.239392 0.132690 0001905 0.140096 0.107922 0.291890 0.251570 0.217629 0.163122 0.122592 0.0540SS 0.093041 0.231073 0.107500 0.270269 0.197545 0.145644 0.0002070015073 0094561 0.179539 0130040 0.069143 0.037561 0.250249 0.211994 O 052013 0.103505 0.231 712 0194490 0 T16107 0 059607 0.031301 01:1564 0173431 0.103667 0072762 0,0513850026034 0.214548 12 13 15 16 17 IS 19 20 TABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 HI 1 2 3 4 5 6 7 3 9 10 11 12 13 14 TS 16 17 18 19 20 4% 0.961538 1.836095 2.775091 3.629895 4.451822 5.242137 6.002055 6.732745 7.435332 S.110896 3.760477 9.385074 9.935645 10 563123 ILH15357 11 652296 12.165669 12.659297 13.133939 13.590326 5% 0.952351 1 859410 2.723248 3.545951 4329477 5.075692 5.786373 6.463213 7.107822 7.721735 8.306514 8.863252 9.393573 9995641 10.379655 10.537770 11 274066 11 669587 12.055321 12.462210 0.943396 1.833393 2.673012 3.465106 4212364 4.917324 5.552381 6 209794 6 801692 7.360087 7.896875 8 353344 8.852683 9.29-1934 9.712249 10.105595 10.477260 10 527603 158110 11.469921 7% 0.934579 1. SOSO18 2624316 3.387211 4.100197 4.766540 5.399289 5.971299 6 S15232 7.023582 7.495674 7.942636 $ 357651 3.745465 9.107914 9.446649 9.763223 10 059087 10.335595 10 594014 89 9% 10% 12 149 16% 0.925926 0.917431 0909091 0.892857 0.872193 0 S62069 1.783265 1759111 1.735537 1.690051 1.646661 1.605232 2.577097 2.531295 2.456852 2.401831 2321632 2.245890 3312127 3.239720 3.169865 3.037349 2.913712 2.793181 3.992710 3.509651 3./790787 3.604776 3433081 3.274294 4.622330 4485919 4.355261 4 111407 3.888665 3.654736 5 206370 5.032953 4.568419 4.563757 4.268305 4.038565 5.746639 5.534519 5.334926 4.967640 4.638564 4.3.13591 6.246SSS 5.995247 5.759024 5.328250 4.946372 4.606544 6.7100ST 6417658 6.144567 5.650223 5.216116 4:333227 7.133964 6 505191 6.495061 5.937699 3.452733 5023614 7.536078 7 160725 6.813692 6.194374 5,660292 5.197107 7.903776 7.486904 7.103356 6.423548 3.842362 5.342534 3:244237 7.7S6150 7366687 66281656.002072 S. 167529 3.559479 5.000635 7.6060806810864 6.1421685575456 S.551360 5.312555 7.623709 69739566.265060 5.663497 9.121635 S.543631 8021553 7.119630 6372559 51745704 9.371557 8.755625 5.201112 7-249670 6467420 5.817345 9.603599 8.905119 3.36192073657776.550309 5.577455 9.315147 9.125546 8 513564 7409414 6.623131 5.928541 205 0.833333 1.527778 2.106481 2.588735 2.990612 3.335510 3.604592 3.837160 4.030967 4.192472 4327060 1439217 4352031 4610567 4.675473 4729561 4774634 4.812195 4.543496 +569550