(a) After 3 months spent on marketing research that cost VBA plc pound 50,000, the management is considering an investment to purchase a new machine to produce bowling balls. The bowling balls would be manufactured in a vacant building owned by VBA and located near Lancaster. The vacant building and the land can be sold for immediately pound 150,000 after taxes The VBA project finance team estimates the cost of the bowling ball machine to be pound 100,000. Depreciation is allowable for tax purposes on a straight-line basis at the end of which the machine will be written down to zero. However, the machine is expected to have an estimated market value of pound 30,000 at the end of year 4, while the land will be worth pound 100,000 after taxes in 4 years time. You expect the gross profit by year during the machines 4-year life to be as follows: pound 48, 200, pound 67, 500, pound 119, 600, and pound 87,000. The project will require pound 5,000 of net working capital, which is recoverable at the end of the project. Required: (i) Advise VBAs management on whether the project should be undertaken if the companys required return is 12% and the corporate tax is 30%. You should consider any investment criteria known to you to support the decision-making process