Question 3 (25 marks) - Capital Budgeting Annual cash inflows from two competing investment opportunities are given below. Each investment opportunity will require the same initial investment of $80,000. Mike Steal Company has a doubt about which investment opportunity is going to provide a higher return to the company- Year Investment A Investment B 2021 $45 000 51,000 2022 40 500 89 000 2023 32,000 87,000 Required: a. Compute the present value of the cash inflows for each investment using a 11% discount rate. Show the calculation steps for the full mark along with the formula. (14 marks] Amount of Cash Flows Present Value of Cash Flows Year(s) Investment A | Investment B Investment A Investment B 2021 $45,000 51,000 2022 40,500 39,000 2023 32,000 87,000 Total Formula: b. Compute the Net Present Value (NPV). (6 marks) Investment A Investment B Present Value of Cash Flows Initial Cost Net Present Value (NPV) c. Which investment opportunities should be accepted based on the NPV analysis? Why