Please do the calculation on paper and explain which option is better. Please show work!!

You are employed as an analyst for a financial management consulting firm. You are asked to evaluate two capital project proposals from two clients. Please prepare a $1$ to $1-\frac{1}{2}$ page type written memorandum evaluating Capital Investment Options I and II below.

The evaluation must be supported by your analysis and calculations. The memorandum must also include a brief explanation of the concepts applied and how they are used in the decision making process. Do not write about the calculations. Address the memorandum to Mr$.$ Vericker in the standard format. $($Use full sentences in a paragraph format and

attach a separate sheet with your calculations.$)$ Capital Investment Option I. Winthrop Manufacturing, Inc is considering two

investments, both of which cost $$35,000,000.$ The cost of capital $($WACC$)$ is $10\%$ for the company. The projects are mutually exclusive. The cash flows are as follows: Which of the two projects should be chosen based upon the: payback method. or net present value method. Should a firm normally have more confidence in the payback method or the net present value method?

Capital Investment Option II$.$ Another company, Augusta Cleaning Supplies, Inc. is considering the purchase of a warehouse automated picking system at a cost of $$2,132,000,$ delivered and installed. The machine is forecasted to provide $$300,000$ per year in cash flow for nine years. The company's cost of capital $($WACC$)$ is $11\%.$ Using the Internal Rate of Return Method, evaluate this investment and state whether or not the investment should be undertaken and why.