NF Power Berhad (NFB) is a listed firm in utility industry since its initial public offering in 2001. The key businesses include power generation and retail, electricity transmission, water supply and wastewater services. With two power plants in Malaysia as well as operations in Thailand and Indonesia, NFB is a major player in the region's power generation and retail industry. As of 30 June 2021, NFB had a market capitalisation of RM5.8 billion. Required: (a) As environmental issues increasingly affect the economy, NFB is committed to its investment strategies which are carried out in a sustainable manner. Driven by this commitment, NFB plans to expedite the identification and repair of leaking valves in all power stations. The expedition known as NFE are expected to provide greater efficiency and reduce the amount of water being consumed by almost 50 percent after the completion of NFE in three years. The upfront cost for NFE is estimated to be RM5 million. The engagement of NFE is expected to increase the production cost savings by RM1.5 million for the first year, RM3.3 million the second year, and RM4.8 million the final year. The overall weighted average cost of capital (WACC) of NFB is 12 percent. The systematic risk of NFE is similar to the NFB as a whole. As the power stations obtained ISO 140001 (Environmental Management Systems) certification recently, NFB enjoys the special tax exemption for NFE as an approved energy-saving investment. Using net present value (NPV) and internal rate of return (IRR) techniques, evaluate the NFE and recommend to NFB whether it is a rational decision to proceed with the expedition. (15 marks)