V Styles Answer ALL of the following 1. A company is evaluating investment in the following two mutually exclusive projects: (3+5 marks) Project 2 16% Project 1 Required Return 1696 Project Life (years) 4 Annual cash flows expected: Cost of the project 225,000 1 82,500 2 85,000 3 78,500 4 75,450 195,000 65,500 75,750 80,000 82,000 Show the necessary calculations: a. What is the payback period of the projects? Which project will the company choose? b. What is the NPV for each of the project? Which project will the company select the project if it applies the NPV decision rule? . 6.90 * 1 C