Q6: Your client, Sarah approaches you, asking about the viability of an investment opportunity overseas. Details are as follows: + Initial Outlay $200,000 + Duration 5 years + Expected Annual Cash Flow $50,000 + Discount Rate 10% p/a + Proceeds from sale of materials at end of year 5 $20,000 a)Calculate the Net Present Value of this investment and interpret your result (Ignore tax implications). 3 Marks b)You advise Sarah that she should require a higher rate of return given this is a high-risk investment. Calculate the Net Present Value if the discount rate rises to 15% 2 Marks C)Sarah has the profile of a risk taker and requires an investment return of 11%. Calculate the internal rate of return (IRR) on this investment and advise Sarah whether this is acceptable to her. 4 Marks