In project management, the project life cycle provides a structured framework for the successful initiation, planning, execution, and closure of a project. Throughout this life cycle, effective stakeholder engagement is crucial for project success. By giving one example project in your industry, discuss how project stakeholder engagement played a critical role at different stages of the project life cycle, and how it impacted project outcomes.

a. A project requires an initial investment of RM100,000 and is expected to generate cash flows of RM30,000 per year for the next five years. The discount rate is 10%. Calculate the Net Present Value (NPV) of the project. (8 marks)

b. Describe factors and variables that are taken into consideration when calculating the Net Present Value of a project. (12 marks)