b) ABC Shipping Asia Ltd is planning to add one new container vessel to its operation for 10 years. Two container vessels with various capacities are considered. Both vessels are expected to have equal lives of 20 years. The capital cost of each new vessel can be depreciated using the straight-line depreciation method. The below table shows estimated projected revenue and costs for each Vessel Project and the residual value of each vessel at the end of year 20. The vessel will be sold at the end of year 10 and the expected market value of each vessel for sale is also given in the table. The company tax rate is 30%. The required rate of return used for evaluating the projects is the company's WACC from part a. Vessel 1 Project Vessel 2 Project Initial investment costs $15 million $9 million $7 million $4.5 million Incremental annual revenue Incremental annual operational costs (exclude depreciation) Estimated life of the vessel $3 million $1.8 million 20 years 20 years $2.5 million $1 million Residual value of the vessel at the end of year 20 Expected market value of each vessel for sale at the end of year 10 $6 million $4 million Continued ... i) Using a table in Word or an Excel spreadsheet, set up the cash flows for each Vessel Project. ii) Calculate the payback period of each Vessel Project. The company has a maximum acceptable payback period of 5 years. iii) Calculate the Net Present Value (NPV) of each Vessel Project. iv) Calculate the Internal Rate of Return (IRR) of each Vessel Project. You can use the formula function in Excel to get the IRR but need to show the process. v) Which Vessel Project should the company accept based on your answers in part ii, iii and iv? Why