Question 4 (50 marks) MTC Namibia Lid has the opportunity to invest in Towers, a project which is supported by the government to extent mobile and internet network coverage to rural areas. The project has the following estimated future cash flows: Year 1 2 4 5 Cash flows |2 600 000 4 500 000 5 500 000 3 400 000 2 000 000 (NS) The cost of the project is N$ 10 million. The company cost of capital is 12%. The project has a Zero residual value. Ignore taxation. Required: Determine the following for the project and advice management whether the project can be accepted if the company requires to recover its investment within three years. a) Net present value (8 marks) b) Internal rate of return (IRR) (12 marks) c) Modified internal rate of return (MIRR) (12 marks) d) The payback period. (6 marks) The discounted payback period (6 marks) f) The accounting rate of return (ARR)(average investment) (8 marks)