The management of Toggle Ltd are evaluating 2 capital investment opportunities for the company. The projects are mutually exclusive and the following relevant data is available. Incremental cash inflows: Project G2p Project G3p End of year 1 24,000 24,000 " year 2 30,000 24,000 " year 3 40,000 24,000 " year 4 24,000 24,000 " year 5 16,000 24,000 Other information: The initial investment asset requirements are: Project G2p is 100,000 Project G3p is 88,500 All initial investment values will be payable immediately and neither project is expected to have any residual value. Both project periods are 5 years. Depreciation is to be charged on investment assets (depreciable value) using the straight line basis. Required: 1) Evaluate the investment opportunities of Toggle Ltd using the following appraisal bases: i. The payback period i. The accounting rate of return (ARR / ROCE) ii. Net present value (NPV) using discounted cash flows (DCF) Note: Toggle Ltd uses a 10% discount factor for investment appraisal 2) Make a recommendation (with supporting reasons) on the project you feel more preferable for Farandole Ltd