Harper Mining Ltd is considering to invest in one of the two following equipment. Each equipment will last 5 years and have no salvage value at the end. The companys required rate of return for all investment projects is 7%. The cash flows of the projects are provided below. Equipment 1 Equipment 2 Cost $150,000 $165,000 Future Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 56,000 53,000 65,000 55,000 43,000 67,000 74,000 62,000 65,000 53,000 Required: a) Identify which option of equipment should the company accept based on net present value (NPV) method. (5 marks) (Note: All answers should be rounded up to 2 decimal places) ANSWER: b) Identify which option of equipment should the company accept based on discounted pay back method. (5 marks) ANSWER: