Present value interest factor of an annuity of R$1$ per period for $n$ periods, PVIFA $($i$,$n$)$QUESTION THREE

Laker Ltd has a choice of two projects to invest in$.$ The following details relate to these projects:

Required:

$3\mathrm{.}1$ Use the net present value method to determine which project Laker Ltd should choose. Show all workings

$3\mathrm{.}2$ Justify why the net present value method $($NPV$)$ is favoured over the payback period. Present value interest factor of $R1$ per period for $n$ periods, PVIF $($i$,$n$)$