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c) The net cash flow for two projects, Coffee Shop and Hair Salon, are as follows: Year 0 1 2 3 4 Coffee Shop

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c) The net cash flow for two projects, Coffee Shop and Hair Salon, are as follows: Year 0 1 2 3 4 Coffee Shop -$10 000 -$3000 $4,000 $6,000 $8,000 Hair Salon -$5000 -$2000 $1,000 $3,000 $5,000 (i) Use the net present value criterion to decide which business project is the most profitable if the market interest rate is 6%. Explain your answer and show all your calculations. (Give your answer to 2 decimal places.) (4 marks) (ii) Estimate the IRR of the Hair Salon project and decide whether this project would proceed? Explain your answer and show all your calculations. (Give your answer to 1 decimal place.) (3 marks)

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