(b) Waridi Limited has constructed a table, shown below, that gives expected cash flows and certainty equivalent factor, for those cash outflows. These mea are for a new machine with a five-year life whose initial investment is sh 9,500,000. The firm has a 15% cost of capital and the risk free rate is 10 per sures cent. Year (t) Cash in flows (CF) Certainty Equivalent Sh Factors (a,) 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 1.0 0.8 0.6 0.6 0.2 4 Required: Determine the NPV (unadjusted for risk) (i) (ii) (4 Marks) Determine the certainty equivalent NPV (use the risk free discount rate) (4 Marks) (3 Marks) (iii) should the firm accept the project? Question Two