QUESTION 1: INVESTMENT APPRAISAL. investment within three years. It is considering a new project their initial capital outlay of $1.400.000 on plant and equipment and an requiring a $200.000 in working capital. Th Required: a) Should an investment be undertaken using the payback period method? ( 8 Marks) b) What are the advantages and drawbacks of the payback period method? c) Calculate the NPV of the Project with cost of capital at 14% and with cost of capital of 18%. (10 Marks) d) Through interpolation, use results of c) above to calculate the IRR of the project. (8 Marks) e) What are the advantages and disadvantages of the NPV method? (6 Marks)