JK Limited is considering undertaking a project whose initial cash outlay is sh$\mathrm{.}80,000,000$ with

an overhaul of $15,000,000$ in year four. Its annual cash inflows are summarized below

Year annual cash inflow

$145$m

$225$m

$335$m

$425$m

$545$m

The cost of capital is $10\%$

I$)$ Determine the projects NPV$.(3$ Marks$)$

II$)$ Determine the projects IRR $(5$Marks$)$

III$)$ State circumstances under which NPV and IRR may provide conflicting result in the choice of

mutually exclusive projects.