UESTION TWO Comfort Construction Limited is considering a new project with an expected life of three years and is expected to result in an increase in sales revenue of K20 million in the first year, K30 million in the second year and K10 million in the third year. Operating costs wil amount to 70% of sales revenue and the company is required to make an investment in working capital of K6 million at the beginning of the project, which is recoverable at the end of the life of the project. The cost of the project is K18 mion and the residual value at the end of three years is Kl 1million. The required rate of return is 14% Assuming no taxation. (a) What is the project's NPV? (b) What is the project's IRR? (c) Should the company invest in this project [back your justification by using your (10 marks) (10 marks) calculations in (a) and (b) above]