At a Board meeting to discuss the proposals the following conversations were heard: Neil Lancastle, the Finance Director, said, "I think that we should calculate the Net Present Value (NPV) the project, in order to ascertain if it is worthwhile." Katarzyna Jaskowiec, the HR Director, responded to this as follows, "I have never understood NPV, can't v use an appraisal method which measures percentage return. I always think it is more straightforward basir financial decisions on percentages." Working as consultant to BioMed plc, you are required to respond to the following tasks. Required: Task 1 a) Calculate the Expected Net Present Value (ENPV) arising out of the incremental cash flows for the investment. You should also comment on the potential impact of any risk factors attached to variable costs. In addition, related to your calculations, provide a view on the financial acceptability of the project. (15 marks) b) In order to satisfy Katarzyna Jaskowiec, calculate the Average Accounting Rate of Return for the investment and briefly comment on your findings. In addition, provide a summary comment with regard to project acceptability, taking account of your calculations in part (a) above. (10 marks)