5 (4 marks) A private company is participating in fisheries project. It has an initial investment in year 2020 of $150 million, expected annual revenues of $24 million and annual operating costs of $4 million per annum. Assuming a project operating life of 12 years. The company expects to finance the project partly through a loan of $50 million at an interest rate of 6% (real) and repaid over the life of the project. The company is required to pay profits taxes of 25% of its net annual operating benefits after allowing for interest costs and depreciation. Assume straight line depreciation. a) You are required to set up the cash flow for this investment showing (and labelling clearly) how to derive the net benefit stream (or, net cash flow) to the company: i. before debt service and profits taxes (Market CBA); ii. after debt service and profits taxes (Investor CBA); b) Show how to derive the internal rate of return (IRR) on a(i) and a(ii)