Question 4 (25 Marks) Excellence Through Knowledge Limited (ETK) is considering two projects in Central America. The initial capital outlay for each project is US $166,000. The cost of capital for the company is 12%. The cash flow for each project are detailed in the table below. Year Restaurant Landscaping $ $ Initial Outlay (166,000) (166,000) 1 84,000 60,000 2 68,000 0 0 60,000 60,000 75,000 5 63,000 80,000 i.) Calculate each project's Payback period (4 marks) ii.) Assuming that the projects are mutually exclusive, which project(s) would you recommend according to the Payback period? Why would you make this recommendation? (2 marks) Calculate each project's Net Present Value (NPV). (6 Marks) 3 4