Fryatt Moshane is considering two alternative investment projects both of which require the purchase of new equipment with a lifespan of four years. The following information relates to the two projects: Project Aye 000 Project Bee 000 Purchase cost of equipment - Year 0 600 720 Estimated accounting profits: Year 1 50 60 Year 2 125 150 Year 3 90 108 Year 4 30 36 Estimated disposal value of equipment 80 96 The company's depreciation policy is to write off the cost of equipment using the straight- line method. Cost of capital is 15% per annum. Discount factors Year 15% 20% 1 0.870 0.833 2 0.756 0.694 34 0.658 0.579 0.572 0.482 Required: a) Calculate for both Project Aye and Project Bee: i. the payback period ii. the net present value iii. the internal rate of return (7 Marks) (5 Marks) (6 Marks) b) Recommend which project should be undertaken, giving reasons for your decision. (2 Marks)