2. A project requires investment of 100,000 p.a. monthly in advance during its first two years and produces income of 20,000 p.a. quarterly in advance beginning after 18 months. The project has no final capital value. a) Calculate the minimum length of the project's time horizon such that its discounted payback period at an effective rate of interest of 6% p.a. is finite. b) Using two iterations of linear interpolation, estimate the annual internal rate of return earned on the project if its time horizon is 25.3 years. Try initial guesses of 6% p.a. and 10% p.a. as part of your first iteration. 2. A project requires investment of 100,000 p.a. monthly in advance during its first two years and produces income of 20,000 p.a. quarterly in advance beginning after 18 months. The project has no final capital value. a) Calculate the minimum length of the project's time horizon such that its discounted payback period at an effective rate of interest of 6% p.a. is finite. b) Using two iterations of linear interpolation, estimate the annual internal rate of return earned on the project if its time horizon is 25.3 years. Try initial guesses of 6% p.a. and 10% p.a. as part of your first iteration