Golden Mileage Ltd is considering to invest in one of the two following projects. Each option will last 4 years and have no salvage value at the end. The companys required rate of return for all investment projects is 8%. The cash flows of the projects are provided below.

	Project 1	Project 2
Cost	$100,000	$120,000
Future Cash Flows Year 1 Year 2 Year 3 Year 4	43,000 54,000 56,000 75,000	54, 000 57,000 68,000 82,000

Required:

Identify which project should the company accept based on NPV method (4 marks) (Note: Please round up the result of each calculation of PV to 2 decimal places only for simplification)

Identify which project should the company accept based on simple payback period method if the firm maintains a policy that every investment project should recover initial investment within 2 years (3 marks).