(a) An agribusiness firm is trying to decide whether to buy a tractor driven boom sprayer for $80,000 which will save costs of $20,000 per annum for 5 years and which will have a resale value of $10,000 at end of year 5. If it is the companys policy to undertake projects only if they are expected to yield a DCF return of 10% or more. Ascertain whether this project should be undertaken. (Use the IRR Method). [15 marks]

(b) What are the weaknesses of this approach? [5 marks]