PROJECT EVALUATION (CAPITAL BUDGETING) (Your response will be counted as complete only when you have supplied the correct answers with proper calculation and justification.) Year 0 Year 1 Year 2 Year 3 Year 4 (Initial) Project TX -$10,000 $5,300 $4,300 $1,874 $1,500 Project OK -$10,000 $1,900 $2,700 $2,345 $7.800 Cost of capital 5.1. Calculate the payback period for each project. Based on this, which project will you approve? Year 1 Year 2 Year 3 Year 4 Payback Period Year 0 (Initial) -$10,000 Project TX $5,300 $4,300 $1,874 $1,500 Project OK |-$10,000 $1,900 $2,700 $2,345 $7,800 Manually calculate the NPVs for projects TX and OK. Based on this, which project will you approve? Year 1 Year 2 Year 3 Year 4 NPV Year 0 (Initial) -$10,000 $5,300 $4,300 $1,874 $1,500 Project TX DCF for TX -$10,000 $1,900 $2,700 $2,345 $7,800 Project OK DCF for TX