Your Assumptions for the Build project are the following: 1. The cost to build is $835,000 but will take two years. To simplify the calculations, you assumed the entire cost would be expended in year 0 with no revenue in Year 1. 2. TerraNova has 10,000 customers currently, and you estimated that 1,000 would want to license the new software in the first year it is available (year 2). The number of users is expected to grow by 3% per year. 3. Since this software is developed internally, it will not be as well-known as the Buy software. The cost to the user for each license of the new software is $1,500 per user per year. 4. There is no incremental cost for the software beyond the development expense. 5. To make the analysis comparable to the Buy scenario, you used only a 5 year period with no TV. Questions: 1. What is the NPV and IRR of each scenario (Buy v. Build)? 2. Which do you recommend and why. 3. The discount rate is not given; you must make your own assumption. Should the two projects have the same discount rate?