QUESTION 5 A project which your company is interested in investing in has the following cashflows. The initial investment is 100,000 and the machine will have a scrap value of 20,000 at the end of year 5.

Year	1	2	3	4	5
Cashflow	(50,000)	40,000	80,000	65,000	50,000

(a) Find the NPV of this project using a discount rate of 15% and 12% (10 marks) (b) Estimate the Internal Rate of Return [IRR] of the investment using the answers from part (a) above. (8 marks)