7.6 Given the necessary data, apply the methods listed in 7.5 to evaluate potential capital investments and make the optimal decision for the business ASSIGNMENT 2 - 5% of total mark Evaluate the options on the following slide from the perspective of NPV, IRR, and payback period Choose one option, and give your rationale 7.6 Given the necessary data, apply the methods listed in 7.5 to evaluate potential capital investments and make the optimal decision for the business . Option A: An initial cash investment of $5,134,358. Year 1 cash flow of $1,900,000, increasing by 15% a year and ending in year 5. WACC of 12% - Option B: An initial cash investment of $5,442,573. Year 1 cash inflows of $1,500,000, increasing by 20% a year and ending in year 6. WACC of 12% 7.6 Given the necessary data, apply the methods listed in 7.5 to evaluate potential capital investments and make the optimal decision for the business Grading rubric 1 mark 1 mark 1 mark Correct NPVs Correct IRRs Correct payback periods Formatting of report Recommendation and rationale TOTAL (partial marks will be awarded) 1 mark 1 mark 5 marks