QUESTION TWO [30] Cane Ltd has a choice of two projects to invest in. The following details relate to these projects: Project A Project Z R 85 000 R 80 000 6 years 6 years Investment required Expected economic lifetime Minimum required rate of return Net annual cash inflows 12 % 12 % R20 000 R22 000 R22 000 R22 000 1st year 2nd year 3rd year 4th year 5th year R 24 000 R 26 000 R23 000 R 22 000 R22 000 R22 000 6th year R 21 000 R22 000 REQUIRED: 2.1 2.2 Use the Net Present Value (NPV) method to determine which project Cane Ltd should choose. Briefly discuss the merits of using the NPV method. Calculate the Payback Period for both projects. What are the advantages and disadvantages of using the payback method? (16) (4) (6) 2.3 2.4 (4)