Milan Ltd are an established UK based company who have being producing kitchen furniture for a number of years. To ensure a high quality products, Marple Ltd uses high quality raw material which the company buyes from overseas supplier in large amounts to get a bulk discount. Currently, the company is considering producing gaming desks, of which the design is innovative and the quality is high. Meanwhile, they intend to continue with the same approach of purchasing the raw materials in bulk and from the same overseas supplier. To proceed with the production of gaming desks, Marple will require a new machine of which the investment is expected to be 300,000. The machine is expected to last three years and to be sold for 20,000 at the end of it useful life. The machine is expected to produce 1,500 gaming desks per annum, which will sell at 500 perdesk. Meanwhile, each gaming desk is expected to cost 350 in variable costs. The fixed cost associated with the production of the gaming desks is expected to be 88,100 per annum, which represents the cost of the building the company will rent particularly for storing the finished desks and the raw materials required for their production. The company has a cost of capital of 9% and usually uses Internal Rate of Return (IRR) as the main method for evaluating its capital investment projects, and it is currently in the process of making the decision about production of the gaming desks including the purchasing of the new machine Required: a) Considering the above information, calculate and comment on the IRR of the project using 9% and 20% discount factors and advise with reasoning on whether Net Present Value (NPV) should be used instead of IRR