a) Compute the IRR for the following project if its initial after-tax cost is $5,000,000 and it is expected to provide an after-tax operating cash outflow of ($1,800,000) in year 1, followed by inflows of $2,900,000 in year 2, $2,700,000 in year 3, and $2,300,000 in year 4? (10 marks)

b) Discuss THREE (3) main characteristic that can be made about the capital budgeting decision. (10 marks)