A project requires an initial investment in year 0 of Rials 2.5 million and an annual operating cost of Rials 250,000. It will generate annual revenue of Rials 500,000. The life of the project is 8 years, salvage value is 10% of the initial investment and the discount rate is 7%. a. Decide whether to accept or reject this project using NPV criterion, and IRR criterion. [5 marks] b. Assume that 90% of the investment cost is borrowed from a bank at an interest rate of 12% over 5 years. The tax on profit is 15%, the depreciation is over 8 years and is linear. Please estimate the private cash flow, NPV and IRR. 15 marks] Paragraph BIEE