Question 2 [35 marks] a. Which project should Environ Ltd accept? Use the net present value (NPV) criterion to evaluate both projects. Explain in detail, including all calculations. Also, clearly state all your assumptions. (15 marks) b. Determine the IRR for each project. According to the IRR, which project should be accepted? Explain in detail, including all calculations. (10 marks) c. Would your conclusions in parts (a] and (lo) change ifthe required rate of return increased to 14%? Explain in detail, including all calculations. [10 marks] Table 2: Cash flows B Landll Borehole Inflow year 1 $450,000 $300,000 Inflow year 2 $450,000 $300,000 Inflow year 3 $450,000 $300,000 Inflow year 5 -$1 500, 000