QUESTION ONE (20 MARKS) Opera Itd has a project with an initial cost of ksh 45 million and it's considering whether to invest in it in the coming year. The company has decided to establish the projects internal rate of return as follows: Year Cash flows (Ksh) 1 19,000,000 2 16,000,000 3 14,000,000 -4 10,000,000 5 8,000,000 Opera Itd is considering a mix of financing sources for this business as follows: Source Equity capital Preference capital Debt capital Amount (kst) 25,000,000 10,000,000 10.000.000 Before-tax cost 189 1196 11.49% Required: Demonstrate that the internal rate of return (IRR) for this project is 13.87% (10 Marks) Advise the management with adequate explanation as to the acceptability of this project (10 Marks) 20 (Total: Marks)