to giving icm What IRR him a complete return on his $205,000 investment er wishes to choose between two alternative investments comes 4 A hotel manager choose aving the following annual net cash inflows over a S-year period the following annual net cash inflows over a 5-year period Year Alternative 1 Alternative 2 $ 8,400 11,600 17,000 23,000 24,000 $24,200 19.800 17.200 10,800 8,000 The amount of the investment under either alternative will be $70,000 a. Using the payback period method, in which year, under both alter- natives, will she have recovered the initial investment? b. Using NPV at 10%, would either alternative be a good investment? 43.800 46,300 50,000 60,000 At the end of the lease, the furniture and equipment would have a cash value of $18,500. Should he make the investment? What IRR comes closest to giving him a complete return on his $205,000 investment? P124 A hotel manager wishes to choose between two alternative investments giving the following annual net cash inflows over a 5-year period: Year Alternative 1 Alternative 2 8,400 11,600 17,000 23,000 24,000 $24.200 19,800 17,200 10,800 8,000 3 4 The amount of the investment under either alternative will be $70,000. a. Using the payback period method, in which year, under both alter- natives, will she have recovered the initial investment? b. Using NPV at 10%, would either alternative be a good investment