Q3. The directors of Mylo Ltd are currently considering two mutually exclusive investment projects. Both projects are concemed with the purchase of new plant. The following data are available for each project. The business has an estimated cost of capital of 10 per cent. Neither project would increase the working capital of the business. The business has sufficient funds to meet all capital expenditure requirements. Project 000 (100) 000 (60) Cost (immediate outlay) Expected annual cash flows: Year 1 Year 2 Year 3 60 30 40 36 16 28 Required: (a) Calculate the net present value (NPV) for each project. (b) Calculate the payback period for each project. (c) State which, f any, of the two investment projects the directors of Mylo Ltd should accept, and why