The Titanic Shipping Company is considering adding a replacement ship for their company The following $2$ options are available

$\backslash$table$[[,$Ship $1,$Ship $2],[$cost$,2,200,000,7000000],[$useful life,$5$ years,$6$ years$],[$require rate of return,$8\%,10\%],[$expected cash flows,,$],[$year $1,200000,120000],[$year $2,400000,120000],[$year$3,400000,120000],[$year$4,600000,120000],[$year $5,800000,120000],[$year $6,,700,000],[$REQUIRED:$,,],[,1)$ WHAT IS THE PAYBACK OF SHIP $1,],[,2)$ WHAT IS THE PAYBACK OF SHIP $2,],[,3)$ WHAT IS THE NET PRESENT VALUE OF SHIP $1,],[,4)$ WHAT IS THE NET PRESENT VALUE OF SHIP $2,]]$

If you only have the resources for $1$ ship which do you choose? Defend answer and you can reject both

If you have resources for both ships do you choose both or only$1$ or none? Defend your answer