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Question 17 (6 points) BONUS: Calculate the Payback period and the NPV of each of the following investments and explain why using this method to

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Question 17 (6 points) BONUS: Calculate the Payback period and the NPV of each of the following investments and explain why using this method to evaluate the two options might give a different answer than using the Payback Period method. Assume a cost of capital of 10%. Investment 1: Investment 2: Cost: ($20,000) Cost: ($20,000) Year 1 cash inflows $ 10,000 Year 1 cash inflows Year 2 cash inflows $ 10,000 Year 2 cash inflows 0 Year 3 and thereafter $ 0 Year 3 cash inflows $ 20,000 Year 4 cash inflows $ 10,000 Year 5 cash inflows $ 10,000 Year 6 and thereafter 0 0

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