Please help me with question 3

QUESTION 3 [20 MARKS] 3.1 (10) According to the payback rule, an investment is accepted if its calculated payback period is less than or equal to a prespecified number of years. Consider the investment below if analysed using the NPV rule. The initial cost is R6-million and the cost of capital is 10% per annum. It has been decided that the project should be accepted if the payback period is three years or less. Using the payback rule, should this project be undertaken? Year 1 2 3 4 Cash Flow Generated R2-milion R2.25-million R2 2-million R2.1-million 3.2 (10) Consider the following table. The payback period cutoff is two years. Both projects cost R2.5 million Year Project X R1-milion 1 2 R1-milion Project Y R1.75-million R1.75-million 0 0 3 4 R1-milion R1-milion Which would you pick using the payback rule? Provide three reasons justifying your