Note: All of this is in one question, so please follow the answer structure to answer those in those tables. Thank you

Case 1 The New York Corporation has budgeted AED 4,500,000 for an investment for a retail store in the UAE. The management has provided the following financial data for each of the locations (A) Abu Dhabi and (B) Dubai it has chosen to do business: Cash flow Year 1 Year 2 Year 3 Year 4 A 1,600,000 1,400,000 1,200,000 1,000,000 Cash flow Year 1 Year 2 Year 3 Year 4 B 980,000 1,200,000 1,400,000 1,700,000 Discount rate is 6% with the following Present value interest factors: Cost 1 Cash flow Year 1 0.9433 Year 2 0.89 Year 3 0.8396 Year 4 0.7921 Required: 1. (3 Marks) Using the Net Present Value method determine the best investment (mutually exclusive events) 2. (3 Marks) Using the Payback period determine the best investment Answer Amount Present value interest factor Present Value Best NPV=B NPV (A) Cash flow Cost Year 1 Year 2 Year 3 Year 4 NPV Amount Present value interest factor Present Value NPV (B) Cash flow Cost Year 1 Year 2 Year 3 Year 4 NPV Amount Present value interest factor Present Value PAYBACK Cash flow Cost Year 1 Year 2 Year 3 Year 4 NPV Amount Present value interest factor Present Value NPV (B) Cash flow Cost Year 1 Year 2 Year 3 Year 4 NPV