Suppose an investment costing `500 million is expected to yield returns of `300 million in the first year, `200 million in the second year, and `100 million in the third year.

It has no scrap value after the third year. Find (

a) the present value of the total return at 10% interest rate and

(

b) whether project is acceptable at 10% interest. Also, compare the internal rate of return and the market rate of interest and find whether the project is acceptable.