018. Oricalion pic is considering imesting in a project to produce a new POLICE. The project will last for four years. Sales revenues in will be as follows 4 2 750.000 860,000 Year Perem.es 805,000 670.000 Furier iformation Cost of sales, administration and selling expenses will be 65% of sales elences The company peys corporation tax at the rate of 25% Afessibility study was conducted and completed costing GBP 75,000 of ution 50.000 has already been paid The company will incur a further expense of 15,000 in product development costs in year 1 Easing space which could be used for other purposes with a rental value of GBP 40.000 pa is available for use by this project The investment needed will be 700,000 which will be depreciated on a stagnt line basis over the four years of the project. There will be no salvage value There is a charge to cover head office expense of GBP 45,000 p.a. The cost of capital is 8% Given the information above, calculate the NPV of the project and say whether the company should go ahead with the project or not and why. (18 marks in total)