500 300 The Following company domiciled in Europe is considering investing in a manufacturing facility in South East Asia. The following information has been provided regarding the investment 000 YO Y1 Y2 Y3 Y4 Y5 Investment Forecasted Contribution 200 400 450 300 Marketing cost 50 50 SO 50 50 Depreciation 30 30 30 30 30 Additional information The company spent USD 75,000 on Market research last year to evaluate the business opportunity of this project Scrap value of the investment is USD 60,000 at the end of the project life Loss of contribution in Europe due to manufacturing in Asia was USD 40,000 in Year one The Company WACC is 10% The Target discounted payback period is 3 years Tax rate is 10% Required 1. Calculate a) The NPV of the investment b) The discounted payback period c) Recommend whether the investment should be undertaken 2. What is the difference between a Sunk cost and a committed cost . . (8 marks) (6 marks)