Carwyn Ltd. is planning to diversify its operations by exploring two new business opportunities. Opportunity Alffa has an expected working life of four years, requires $135,000 of initial capital expenditure and a further 55,000 of working capital. At the end of year 4 the residual value is initial cash outflow of 215,000 which includes working capital of 115,000. At the end of year 4 the residual value is estimated to be f45,000. Estimates for net cash flow for both projects are as follows: Required: - a. Utilising the above information, numerically assess the projects using: - - Payback (5 Marks) - Net Present Value using the present value rates at 15% (5 Marks) - Internal rate of return using present value rates at 25% (5 Marks) b. Based on your evaluation, make recommendations as to which project should be undertaken? Please justify your recommendations using appropriate academic literature. (5 Marks) TOTAL MARKS =20