urgent!!

QUESTION - PROBLEM 2 Problem 2-20 POINTS (approximately 20 mins) You just graduated from University and today is your first day as an intern at large Investment Company. Your supervisor, Mr. Sharipov, approached you and asked you to evaluate investment project "Mercury" using capital budgeting techniques you have learned in University. He gives you following details of the project (assume all cash inflows/outfiows occur at the end of the year.. TEO T=1 T-2 T:3 T-4 T=5 T=6 T=7 in thousands USD Initial Cost $ Cash inflows during 5 years 15 000 20 000 30 000 40 000 50 000 Cash outflows for the last 2 years of the project life -15 000 -55 000 Answer to the following questions of Mr. Sharipov (You must show all your calculations): a) What is NPV of the "Mercury" project if the cost of capital is 12%? (5 points) b) Based on the result from a) should the "Mercury" project be accepted? (2 points) Mr. Sharipov then asked you to calculate IRR of this project. After trials and errors, you find out that "Mercury" has two IRRs: 14% and -15%. c) Based on IRR, should you advice Mr. Sharipov to accept "Mercury" project? Can IRR rule be used to evaluate this project? Justify. (5 points) d) Calculate Profitability Index (PI) of the "Mercury project (5 points) Mr. Sharipov is very pleased by the job you have done. He now asks you to calculate a payback period for a Project "Zeta" and Project "Epsilon" based on the following: in USD Annual Cash flow Initial investment 30 000 40 000 Project Zeta Project Ensilon 5 000 4000 Mr. Sharipov tells you that according to company's policy maximum payback period for these types of projects is 7 years. e) Based on Payback rule only which project should be accepted: "Zeta" or "Epsilon"? Justify with calculations. (3 points)