Kogan.com is considering investing in a new fleet of delivery trucks, costing $10,000,000 today. In the first year of the project, it is expected to yield revenue of $4,000,000 and this is expected to grow at 10% p.a. for another 2 years. Operating costs are expected to be 15% of annual revenue. The project will be terminated at the end of the third year and the entire fleet is expected to be sold for 10% of the original cost. Kogan.com is financed 70% through debt which has a cost of 8% and shareholders expect a 12% return on their equity. Show all your workings when calculations are required and round off your FINAL result to TWO decimal places. a) Set out the project time line complete with cash inflows, outflows and net cash flows by year. (6 marks) b) Determine the required rate of return of Kogan.com to be used as the discount rate in the analysis of this project. (3 marks) c) What is the Net Present Value (NPV) of this project? Explain if this project should be accepted according to the NPV rule. (4 marks) d) What is the Internal Rate of Return (IRR) of this project? Explain if this project should be accepted according to the IRR rule. (3 marks) e) Identify which of the following changes may lead to an increase in the required rate of return for this project and briefly explain why and why not. (4 marks) Holding everything else being equal, The credit risk of Kogan.com unexpectedly increases The proportion of debt of the total fund raised for the project increases