I Q1. There is an independent project of Ocean CO. (corporation) requires calculating Internal Rate of Return. This project cash outflow is $90,000 and the following are the cash inflows after tax but before depreciation. Years Cash Inflows (S) 1 40,000 2 14,000 3 25,000 4 20,000 5 15,000 Required: A) What is the IRR of this project? Do you accept/reject this project based on IRR considering the current pandemic scenario of the economy? Give elaborated explanation to your answer. [7 Marks] B) List and explain other issues other than IRR are relevant to the decision whether to invest or not in this project investment. [7 Marks] Q2. Middle East Corporation currently considering two projects for the investment. Based on ARR both projects are yielding 15% and 18% respectively, consider this as cost of capital. Finance Manager would like to use NPV and Pl to finalize the project section. Cash Inflows at the end of 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year Project A (S) ($150,000) 90,000 60,000 50,000 40,000 30,000 Project B (S) ($300,000) 90,000 50,000 70,000 90,000 100,000 You are required to: 1. Calculate NPV and PI and help the manager for taking right decision. Clearly explain the decision criteria. [7Marks] 2. This company is planning to invest $400,000 on each of these projects. Will there be any change in NPV & PI? Explain your answer with relevant calculations and examples. [7Marks]