B3. Bisneyland Theme Park has determined to install a new amusement ride. Two options of Thriller rides and Pendulum rides are under consideration with the following best estimates on each of the investments: Amusement ride Thriller ride ($ million) 21 Pendulum ride ($ million) 38 Initial outlay at to Maturity period Future revenue at maturity 5 years 4 years 90 75 Bisneyland could only invest in one amusement ride due to financial limitation. Market interest rate is 6% per annum. Required: (a) Compute the net present values (NPVs) of the two amusement rides. (6 marks) (b) Compute the internal rates of returns (IRRs) of the two amusement rides. (6 marks) (c) Based on the results in part (a) and (b) above, explain which amusement ride should be recommended for investment. (2 marks) (d) If the maturity period of the Pendulum ride is shortened to 3 years while that of the Thriller ride remains unchanged, would your recommendation in part (c) above be different? (6 marks) (Total 20 marks)