An infrastructure project has a timeline of 15 years and starts on the first day of the coming month. Recurring expense payments start from the beginning of the project at a rate of $12 million per annum payable monthly in advance for the first 2 years. There is also a one-time expense of $1.6 million to be paid at the beginning of the contract. 2 years after the project starts, an income stream of $8 million per annum payable half-yearly in arrears will be received for the rest of the project. a. Calculate the net present value of the project using an effective annual interest rate of 8%. (5 marks) b. Calculate the discounted payback period (expressed in units of years) of the project using an effective annual interest rate of 7%. (6 marks) An infrastructure project has a timeline of 15 years and starts on the first day of the coming month. Recurring expense payments start from the beginning of the project at a rate of $12 million per annum payable monthly in advance for the first 2 years. There is also a one-time expense of $1.6 million to be paid at the beginning of the contract. 2 years after the project starts, an income stream of $8 million per annum payable half-yearly in arrears will be received for the rest of the project. a. Calculate the net present value of the project using an effective annual interest rate of 8%. (5 marks) b. Calculate the discounted payback period (expressed in units of years) of the project using an effective annual interest rate of 7%. (6 marks)