Question 2 Kuasa Perkasa Bhd intends to acquire a new resort in Desaru. There are two options, the Banana Resort, and the Papaya Resort. The acquisition cost is RM 2.7 million for both options. The following is an estimate of future 5-year cash flows: Year 1 2 3 4 5 Banana Resort 600,500 610,700 720,400 830,600 1,340,000 Papaya Resort 580,300 620,600 700,900 810,800 1,420,000 Requirement Calculate and choose the best option for each of the following: a) Determine which alternative has the shortest payback period for the hotel using the payback period method. b) Determine which alternative has a higher NPV, use PVIF at 13%. (20 marks)