JC Engineering Ltd is evaluating a new three-year project at a cost of R20 million, which is expected to result in an increase in sales revenue of R15 million in the first year, R20 million in the second year and R10 million in the third year. The company expects operating costs to be 60% of sales revenue. The company will need to invest R4 million in working capital at the beginning of the project, which is recoverable at the end of the life of the project. The residual or market value of the project at the end of year 3 is expected to be R12 million. The required rate of return is 12%. Assuming no taxation. 4.1 a) What is the project's NPV? b) What is the project's IRR? 4.2 Magic Media Ltd is considering two mutually exclusive projects. Project A costs R50m and will generate a net cash flow of R20m per year for four years. Project B costs R 68m and will generate a net cash flow of R27m per year for four years. The residual value of either project at the end of four years is expected to be 30% of cost. The depreciation deduction is 20% per year on a straight-line basis. The cost of capital is 11% and the corporate tax rate is 28%. Which project should you select