1. (3 marks) In evaluating the new IT software project, is the cost of $100,000 spent on marketing analysis relevant? Explain your answer(s). 2. (12 marks) Calculate the incremental free cash flow during the project's life (starting from year 0 to year 5). Show workings. 3. (10 marks) Calculate the NPV, payback period and IRR of the project. Should the project be accepted? Show workings and explain your answer(s). Students may present the workings using the table below. Please set out your work clearly and neatly. If you choose you can take advantage of the table below or you can continue your workings on the following page which has been intentionally left blank. IRR:21.35% 1. (3 marks) In evaluating the new IT software project, is the cost of $100,000 spent on marketing analysis relevant? Explain your answer(s). 2. (12 marks) Calculate the incremental free cash flow during the project's life (starting from year 0 to year 5). Show workings. 3. (10 marks) Calculate the NPV, payback period and IRR of the project. Should the project be accepted? Show workings and explain your answer(s). Students may present the workings using the table below. Please set out your work clearly and neatly. If you choose you can take advantage of the table below or you can continue your workings on the following page which has been intentionally left blank. IRR:21.35%