Required: (1) Advise KK Smith & Sons which project should be undertaken using: (i) the payback method of investment appraisal: 13 (ii) the return on capital employed (ROCE) method of investment appraisal: (iii) the net present value method of investment appraisal. (16%) (2) Critically assess and discuss the problems that arise for the net present value method of investment appraisal when capital is limited, and explain how such problems may be resolved in practice. (9%)