Jefferson is a small ski resort. They have experienced 2 problems: unusually low snowfalls and long lift lines. They have the following possible remedies. They could purchase an artificial snow machine for $160,000. They could spend $200000 to buy a high-speed lift. However, the resort only has $200,000 available. They can only afford one of these solutions. The following additional information is available: Snow Machine Chair Lift Estimated life in yrs 20 36 Est. Additional Revenue/ yr $40,000 $54,000 Est. Additional Expense/ yr $15,000 $19,000 The additional expense includes depreciation. The only difference between expense and cash flow is depreciation. Because these are risky projects, a return of 20% is required. Compute the payback period. Compute the Accounting Return Compute the NPV Estimate the Internal Rate of Return Which Project would you recommend?