Use the following information to answer the questions that follow. RAK manufacturing company plans to invest in plant and equipment to expand its operating activities to be ready for Dubai EXPO 20-22. The plant and equipment will be useful for five (5) years only. The plant and equipment will cost $110,000. RAK expects to receive the following net cash flows in the next five years. YEAR NET CASH FLOWS $ 1 10,000 30,000 2 3 4 50,000 10,000 60,000 5 The discount rate is expected to be 12% QUESTION 1 a) Calculate Net Present Value (NPV) 2 marks b) Based on your answer in a) above: would you be willing to invest in RAK? And why? 2 marks c) General question: What financial impact does a project that has a negative NPV have on the overall value of the firm? 2 marks. d) General question: Would you be willing to invest in a project that has a NPV of zero (O)? And why? 2 marks c) What are the differences between the sophisticated investment techniques and so called naive or not sophisticated investment techniques? 2 marks 1) Discuss two (2) other finance terms that mean discount rate 2 marks g) Compute the Profitability Index (PI) of this investment 2 marks Page 3 of 7