Question 1 (15 marks) Your company poloy to invest sn assets with a marmun payback 012 years Tho company poley aiso makes provision to use the Net Present Value (NPV) as another method to salech proyects Only 5 nvestment with a postve NPV will be seleoted You heve been suppled wth the followng data regarding two mutualy oxclusve investment opportunses Project Alpha Project Beta inhal Cash Expenditure (50,0001 (50,000) Net Cash Flow Year 1 25,000 10,000 Year 2 10,000 20,000 14,000 Year 3 16,000 26,000 10,000 Year 4 Estmated resale value at 12 13 10,000 10,000 the end of year 4 9 20 2 27 2 Notes The cost of capital is 10% Ignore tax . . Reguired. 1 Calculate the Payback penod tor both investments and based on the company's polcy select a project 2 Calculate the net present value (NPV) of both projects and taking the company's polcy into (10) consideration select a project TURN OVER