QUESTION 2 [18 MARKS] Your firm is trying to invest in the Project A for planning horizon of 5 years. The initial investment and initial revenue are RM250,000 and RM15,000 respectively. The costs for the first year are renovation of building with RM4, 500, IT with RM5, 300 and maintenance with RM8, 900. The annual cost of operation is RM15,000 for the second year while remaining are RM25,000. The company predicts that the project will generate a stream of earning RM130,000, RM135,000, RM125,000 and RM145,000 for the first, second third and fourth year respectively. While the expected revenue of year 5 comes from 3rd party payment with RM69.000, technology transfer with RM71,000 and new systems with RM59,000. a) Develop a gross cash flow. 1 (2 Marks) b) Estimate the internal rate of return (IRR) by considering the cash flow after tax of 30% (14 Marks) c) According to your answer on Q2 (c), if the Project B has IRR of 35%, decide the best investment and state your reason (2 Marks) Solo