Question 2 The prospective exploration for oil in the outer continental shelf by a small, independent drilling company has produced a rather curious pattern of cash flows, as follows: End of Year (EOY) Net Cash Flow ($) 0 -520,000 1-12 +200,000 12 -1,500,000 + + The $1,500,000 expense at EOY 12 will be incurred by the company in dismantling the drilling rig (consider PW (0%) = $ 380,000) A. Over the 12-year period, plot PW versus the interest rate (l) in an attempt to discover whether multiple rates of return exist (range of i' for positive PW values is needed). www B. Based on the projected net cash flows and results in Patla), what would you recommend regarding the pursuit of this project2 Customarily, the company expects to eam at least 20% per year on invested capital before taxes. Use the External Rate of Return (ERR) method (20%). C. Recalculate the answer of Question 2b, for the different study period (choose the last digit of your new matric number as study period, year) and compare both results (result of Question 26 and Question 2c). You need to justify which projects is better to be conducted. If your last digit of new matric number is 0, you need to use 5 years as study period