A company is considering investing in a project with the following specifications: Initial cost Year 1 - Profit Year 2-Profit Year 3 - Profit Year 4 - Profit Year 4-Scrap value 450,000 80,000 60,000 10,000 1,000 50,000 Additional information: (1) (2) The useful life of the project is 4 years. The initial cost is paid at the beginning of Year 1. (3) All other cash flows take place at the end of the year. (4) Annual depreciation which is calculated on a straight-line basis has been deducted from the profits shown. (5) The scrap value is not included in the profits. (6) The cost of capital is 8% per annum Required: (a) Calculate the net cash flows for each of the years (Year 0 - Year 4). (8 marks) (b) Calculate the payback period for the project. (3 marks) (c) Calculate the net present value for the project (9 marks)