Question 4 (3 marks) Wyndham Ltd is considering investing in a new project and has identified two alternatives: Project Hunter Valley and Project Coonawarra. The details of each project are given below: Initial cost (paid at time 0) Cash flow received Yr 1 Cash flow received Yr 2 Cash flow received Yr 3 Method 1: Net Present Value Method 2: Payback Period Method 3: Accounting Rate of Return Project Hunter Valley $120,000 $60,000 $80,000 $50,000 $43,834 Project Coonawarra $200,000 $60,000 $80,000 $160,000 $51,156 2.375 years 33.3% 1.75 years 38.9% Both projects will have no residual value (will be worth zero) after the 3rd year. Required (200 words): a. For each method, state the decision rule and identify the project that yields the most favourable result for Wyndham Ltd. (2 marks) b. Draw an overall conclusion as to whether, based on the 3 methods, you would recommend Project Hunter Valley or Project Coonawarra and why. (1 mark) Page 3 of 3 BBUS1DAS - Assignment 2 (1,000 words), Tri 2, 2020