Desmond is also considering an investment into its computerized supply chain with a view to generating cash savings from using the benefits of currently available technology. Two options are under consideration. Option A will cost 200,000 and operate for five years, while Option B will cost 245,000 and remain operational for seven years. Given the longer implementation period, Option B will not realize any cash savings until the end of year 2. Neither investment will have any resale value at the end of its life. Because of the scarcity of investment capital, he can only undertake one of the supply chain projects. The director of the company is asking for your help in evaluating the two proposals. The cash savings any new investment in the years of operation are expected to be as follows: Option B 000 Option A 000 50 70 80 70 60 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 80 85 86 101 81 71 Desmond has a cost of capital of 15%. Task F Calculate the NPVs and payback periods of the two supply chain investment proposals. Advise the directors which of the two investments should undertake. (10 marks) Task G Write a not more than 300 words summary report based on the task F together with appropriate tables/graphs and to advise additional considerations they should take-into- account when deciding which project to adopt. (15 marks)