CLASS ACTIVITY KSB is evaluating two programmes. Both programmes will require an initial investment of GH1,200,000. Funds available to KSB can support only one of the two programmes. The expected cash flows of the two programmes are as follows: CLASS ACTIVITY Period PHD SHORT COURSES 1 2 3 (GH) 160,000 220,000 300,000 440,000 620,000 300,000 220.000 (GH) 480,000 480,000 120,000 220,000 120,000 120.000 420,000 5 6 7 The required rate of return/opportunity cost of capital of KSB is 20 per cent. The company will invest GH 40,000 in working capitalin year three. Required As a programme consultant hired by the school, you are supposed to appraise the two programmes and make recommendations your appraisal should be in a report form) based on the following: Payback Method Net Present Value (NPV) Method Comparing the two appraisal methods above, which one will you recommend to KSB? Justify fully your choice in the report. CLASS ACTIVITY KSB is evaluating two programmes. Both programmes will require an initial investment of GH1,200,000. Funds available to KSB can support only one of the two programmes. The expected cash flows of the two programmes are as follows: CLASS ACTIVITY Period PHD SHORT COURSES 1 2 3 (GH) 160,000 220,000 300,000 440,000 620,000 300,000 220.000 (GH) 480,000 480,000 120,000 220,000 120,000 120.000 420,000 5 6 7 The required rate of return/opportunity cost of capital of KSB is 20 per cent. The company will invest GH 40,000 in working capitalin year three. Required As a programme consultant hired by the school, you are supposed to appraise the two programmes and make recommendations your appraisal should be in a report form) based on the following: Payback Method Net Present Value (NPV) Method Comparing the two appraisal methods above, which one will you recommend to KSB? Justify fully your choice in the report