CIn order to satisfy future growth opportunities. COL has asked Rachel Consulting Limited to conduct some market research. Rachel Consulting is being paid $$25$m as a fixed fee for her expert consulting services. Project A has an initial outlay of $$150$ million.

Project A will generate additional revenues of $$45$ million starting at the end of year $1$ until the end of year $10.$ It will also incur additional working capital expenses of $$1$ million immediately, this working capital will be recovered at the end of the project. The operating costs will be $20\%$ of the revenues from years $1$ to $10.$ They will be depreciated on a straight line basis over ten years to zero book value. COL has estimated that some assets involved in the upgrades can be sold at the end of year $10$ respectively for $$25$ million. The tax rate is $30\%.$ All cash flows are annual and are received at the end of the year. The cost of capital for both projects is $6\%$

$1.$ using excel calculate the FCFs and the NPV $.$

$2.$ What is the discounted payback period?

$3.$ What is the IRR?