(c) Calculate the net present value using a discount rate of 8 per cent EXERCISE 3 Large Group Lid is assessing a business investment opportunity. The estimated cash flows for which are as follows: Jan. 2023 $400,000 (Initial investment) The net operating annual cash flows arising the last day of the year are as follows: Dec. 2023 f290,000 Dec. 2024 $160,000Dec. 2025 $200,000 Dec. 2025 $75,000 (Cash inflow from residual value) All the above figures are expressed at 1 January 2023 prices. The business's cost of capital is 9% p.a. Corporate tax is charged on profits at a rate of 25% payable during the year in which the profit is earned (assume that the taxable profit equals the net operating cash flow). The asset will be disposed of in 2025 and doesn't give rise of any capital allowances. Required: Calculate the discounted payback period, the net present value, and the profitability E index of the project. E What would you conclude if the maximum acceptable discounted payback period of Large Group Ltd is two and a half years (DPP=2.5)? What are the three main reasons for conflicting rankings that sometimes occur when projects are evaluated with the net present value and internal rate of return capital budgeting techniques