Table 2: Cash flows B Borehole Landfill $300,000 Inflow year 1 $450,000 $300,000 Inflow year 2 $450,000 $300,000 Inflow year 3 $450,000 Inflow year 4 $450,000 $450, 000 Inflow year 5 -$1 500, 000 Inflow year 6 Question 3 [20 marks] Environ Ltd has revised its estimates of expected after-tax cash flows as shown in Table 2. The initial outlays are $800,000 for the landfill and $250, 000 for the borehole. Environ Ltd maintains the required rate of return at 12% for both projects. a. Based on the net present value (NPV) criterion, which project should Environ Ltd accept? Explain in detail, including all calculations. Also, clearly state all your assumptions. (10 marks) b. Based on the internal rate of return (IRR) criterion, which project should Environ Ltd accept? Explain in detail, with the graph of IRR and all working steps. Also, clearly state all your assumptions. (10 marks)