a$)$ Calculate the net present value of the project and advise Hungry Cake Creations on whether or not to invest in this new initiative.

$[16$ marks$]$

b$)$ You have calculated the Internal Rate of Return $($IRR$)$ at $10\mathrm{.}8\%.$ Explain what information this gives you about the project and briefly explain what your recommendation would be if the project discount rate was to move to $12\%.($You are not required to re$-$calculate the NPV$).$

$[3$ marks$]$

c$)$ The senior management have several concerns about the reliability of the forecasts for this project. Identify and explain $2$ ways in which the company could assess the project risk and explain how each method would incorporate risk into their decision$-$making process.

$[6$ marks$]$

solve in $50$ mins Thanks