Medipharm Sdn Bhd must install a central air conditioning unit in its new Pharmarcy plant. Medipharm has two options of air conditioning; one is an inverter air conditioning unit and the other one is a conventional air conditioning. The inverter unit has huge upfront cost and low operating cost while the conventional one has low initial investment but high operating costs. The cost of capital of Medipharm is 7% The costs of the two types of air conditioning are shown below: Year Inverter $600,000 $50,000 $50,000 $50,000 $50,000 $50,000 Conventional $1000,000 $175,000 $175,000 $175,000 $175,000 $175,000 Required: (a) Which option would you recommend based on NPV method? (6 marks) (b) The chief financial controller wants to know the IRRs of the two options, which one would you recommend based on IRR method? (6 marks) (c) If the WACC rose to 15%, would this affect your recommendation? Explain your answer and the reason this result occurred. (8 marks) What is the difference between primary and secondary markets? Which market does the IPO belongs to