Question 3 - 15 marks a) Briefly describe the following numeric assessment methods: i.) Payback Period ii.) Present Value (PV) iii.) Net Present Value (NPV) (1 Mark) (1 Mark) (1 Mark) Initial Investment Project A $100,000 Project B $80,000 Projected Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5 10,000 20,000 40,000 50,000 40,000 10,000 50,000 20,000 20,000 10,000 Total Projected Cash Flow 160,000 110,000 b) Assuming an interest rate of 5% use the project data shown to calculate the following i) The total PV for each project (2 Marks) ii) The NPV for each project (2 Marks) i) The payback period for cach project (2 Marks) iv) Your recommendation for the project to execute (1 Mark) c) A motorbike courier delivery company are deciding on a new fleet motorbike for their organisation and have ranked the options under 4 relevant headings shown below. Motorbike Speed Maintenance Insurance Cost Harley Davidson Poor Moderate poor Honda Excellent Moderate Excellent Excellent Bugatti Excellent poor Suzuki Moderate Moderate Excellent Excellent Cost Poor poor poor Given the following scoring system (Excellent 3. Moderate 2. Poor 1) use the weighted scoring method to ascertain the optimum motorbike for the organisation. Note: the importance to the organisation for each of the criteria have been assessed by the management team in the weighting table below. Cost Speed Maintenance Insurance Cost 0.1 0.7 0.1 0.1