2. What is the expected rate of return on the remainder of the expenditures for the offshore oil project? How should the sunk costs of $75 million be taken into account? (Hint: generate the expected annual returns and then the expected cash flows over time to calculate the IRR. Assume: (a) that all outlays are made immediately and inflows begin in one year; and (b) that the appropriate cost of capital for the project is 16 percent.)