Muscatel, Inc. is evaluating whether to build a bridge that will take two years to construct, or use a ferry to transport ore across a river. The cost of each alternative is a follows:

Evaluate the following capital budget project based on each of the following methods:
1. Payback method
2. Net Present Value method
3. Internal Rate of Returnmethod

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Bridge Ferr Investment ear 0 S4.000.000 S1,000,000 Annual revenue Year 1 Year 2 Years 3-10 750,000 750,000 S750,000 1,500,000 Annual operatingS250,000 S100,000 cost Cost of capital 1000 10%