QUESTION TWO (20 MARKS) a) Jirani chemists is putting up a 5-year project. The project is expected to generate the following sales revenue; 2 3 4 5 Year Sales revenue 750000 780000 700000 900000 950000 The project requires an initial cash outlay of 1 million and annual operating expenses of 300000 p.a. the project will have a salvage value of 200000 at the end of its economic life. The firm applies a straight line method of depreciation for all new projects. All the income will be subjected to a tax rate of 40%. The cost of capital is 12% Required; Prepare a schedule to show the cash flows generated by the project (8 marks) Evaluate the project using the payback period, NPV and profitability index (8 marks) il) Why do you think that the profit maximization goal of any business has been criticized? Explain any 4 points to your thought (4 marks) b)