ICE $($Week $12,$ Lesson $123$ Winter $2024$ HRMNTO$1-4$ Launa Vaughan A$.$ MODERNIZATION CASE $(10$ Marks$)$ Management is contemplating investing $$1\mathrm{.}5$ million to modernize a plant and they would like to get a $20\%$ internal rate of return. Should they go ahead with the decision? The economic life of the project is estimated at $10$ years. The savings $($or cash inflows$)$ are estimated at $$300,000$ per year. The cost of capital is $14\%.$ Required:Calculate the Net Present Value of the project? $(2$ marks$)$What is the approximate IRR of the project? $(2$ marks$)$What is the payback of the project? $(1$ mark$)$Should management go ahead with the project? Why or why not? $(2$ marks$)$What factors, if they changed, would impact your decision? $(3$ marks$)$