The Managing Director, Roads Infrastructure, has to decide whether to continue operating the in$-$house gravel road maintenance services or close it down and contract in an external service provider. Determine the best option for the next five years, accepting that the roads to be serviced will remain functional and grading and maintenance are done per annum. Road Infrastructure will receive R$2$Om in revenue in the first year of operations, and this amount will increase by $8\%$ per year. Use a discount rate of $10,$ and a taxX rate of $27\%$

Option $1$: In$-$house service: This option requires covering maintenance costs of the facilities and the budget in year one for this item is R$1500000,$ an amount which will escalate by $5\%$ per annum until the end of the five$-$year period. It however also requires immediate acquisition of urgently required new equipment at a cost of R$15750000,$ with training cost of R$250000,$ and installation cost of R$1250000.$ The book value of the equipment will be R$200000$ at the end of the five$-$year period. Staff support services will amount to R$410000$ in year one and will escalate by $7\%$ per annum. Staff salaries will amount to R$5900000$ in year one and will escalate by $8\%$ per annum. Materials required during the first year amounts to R$6050000$ payable at the end of the year. These prices are expected to increase by $10\%$ per annum. Inventory of R$200000$ will be required at the start of the project. Determine both NPV and the IRR