4. E411 PLC is considering Bee Keeping Business beginning 2013 EC. The following are project requirements and costs related to the new project: 0 Land will be obtained on a lease basis for annual rental payment of Br800,000 payable at the beginning of each year over term of the lease. The lease satisfies the conditions for IFRS 16 lease contract 8: the lease term is 6 years. The costs of constructing fences and other infrastructures is Brl,500,000 with no residual value. An office building will also be constructed at a cost of Br1,200,000 with no residual value. Proposed number of hives: 600 (acquires for Br 3,000 each hive including bees). The salvage value of bee hives is Br 150,000. Site preparation costs (to be added to cost of hives) total Br240,000. Production equipments will cost the PLC Br520,000 with salvage value of Br 40,000. The cost of office equipments and furniture totals Br360,000 with no residual value. Number of people to be employed... 25 (the average wage of each employee is Br 7,000 per month and becomes Br 9,000 per month starting from year 4). Raw materials... Sugar and other carbohydrate products..... 2 kilogram per hive per day for 365 days a year. The cost per Kilogram of these raw materials will be Br 50 from year 1 to year 3 and Br 55 from year 4 to year 6. Cleaning supplies worth Br 7,000 per month