Question Tree : (5 Marks) 1- Given an investment project having the following annual cash flows; find the IRR.(2.5 Marks) 2 3 6 7 9 10 Year Cash Flow 1 -90 4 5 17.5 12 8 60 -3.0 15 51 60 -6.0 30 2- A company is deciding whether to bid for a certain project or not. They estimate that merely preparing the bid will cost $30,000. If their company bid then they estimate that there is a 50% chance that their bid will be put on the "short-list", otherwise their bid will be rejected. Once "short-listed" the company will have to supply further detailed information (entailing costs estimated at $5,000). After this stage their bid will either be accepted or rejected. They are considering three possible bid prices, namely $185,000, $200,000 and $220,000, including the decision to abandon the bid. They estimate that the probability of these bids being accepted (once they have been short-listed) is 0.90, 0.75 and 0.35 respectively. The company estimate that the labour and material costs associated with the contract are $157,000. What should the company do and what is the expected monetary value of your suggested course of action?(7.5 Marks)