ruption, activate before Tuesday, 7 March 2125. Activate 1. SKIG Ltd, a construction company, is considering the selection of one from two mutually exclusive investments projects, each with an estimated 5-year life. Project Y costs K1, 616,000 and is forecast to generate annual cashflows of K500, 000. Its estimated residual value after five years is K301, 000. Project Z, costing K556, 000 and with a scrap value of K56, 000, should generate annual cashflows of K200, 000. The company operates straight-line depreciation policy and discounts cashflows at 15%. Calculate the payback ARR NPV and IRR for each project and discuss which seems to be the better investment opportunity