2.Cab Co owns and runs 350 taxis and had sales of $10 million in the last year. Cab Co is considering introducing a new computerised taxi tracking system. The expected costs and benefits of the new computerised tracking system are as follows: {i} The system would cost $2,100,000 to implement. (ii) Depreciation would be provided at $420,000 per annum. {iii} $75,000 has already been spent on staff training in order to evaluate the potential ofthe new system. Further training costs of $425,000 would be required in the first year if the new system is implemented. {iv) Sales are expected to rise to $11 million in Year 1 ifthe new system is implemented, thereafter increasing by 5% per annum. If the new system is not implemented, sales would be expected to increase by $200,000 per annum. (v) Despite increased sales, savings in vehicle running costs are expected as a result ofthe new system. These are estimated at 1% of total sales. (vi) Six new members of staff would be recruited to manage the new system at a total cost of $120,000 per annum. {viijl Cab Co would have to take out a maintenance contract for the new system at a cost of $75,000 per annum for ve years. (viii) Interest on money borrowed to nance the project would cost $150,000 per annum. (ix) Cab Co's cost of capital is 10% per annum. Required: (a) State whether each of the following items are relevant or irrelevant cashflows for a net present value (NPV) evaluation of whether to introduce the computerised tracking system. {i} Computerised tracking system investment of $2,100,000; (ii) Depreciation of $420,000 in each of the five years; {iii} Staff training costs of $425,000; (iv) New staff total salary of $120,000 per annum; {v} Staff training costs of $5,000; (vi) Interest cost of $150,000 per annum