Question 4 (25 Marks) Excellence Through Knowledge Limited (ETK) is considering two projects in South America. The initial capital outlay for each project is US $110,000. The cost of capital for the company is 4%. The cash flow for each project are detailed in the table below. Year Restaurant $ Landscaping $ Initial Outlay (110,000) (110,000) 1 34,000 48,000 2 36,000 40,000 3 0 25,000 4 27,000 0 5 33,000 11,000 i.) ii.) Calculate each project's Payback period (4 marks) Assuming that the projects are mutually exclusive, which project(s) would you recommend according to the Payback period? Why would you make this recommendation? (2 marks) iii.) Calculate each project's Net Present Value (NPV). (6 Marks) iv.). Assuming that the projects are independent, which project(s) would you recommend according to the NPV? Why would you make this recommendation? (2 Marks) v.) Calculate each project's Discounted Payback Period. (6 Marks) vi.) Explain the two (2) major problems with the Internal Rate of Return (IRR) that are addressed by using the Modified Internal (5 Marks) Rate of Return (MIRR). Explain how the MIRR addresses these problems.