1) (30 marks) An company uses a technologyr which it purchased for $15 million

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1) (30 marks) An company uses a technologyr which it purchased for $15 million. Operating costs are $2 million per yearJ and revenues of $7.3 million. The service life of the technology is 5 years and salvage value is $2 million. The corporate tax rate is 25%. a) Calculate the after—tax IRR using the approximate approach. b) If the after—tax LIARR is 15%J is this a good investment? c) Should you do a more precise IRR calculation before ?nalizing your decision? Brie?y explain why or Why not.