A factory is considering partially automating one of its production processes, details can be found in the summary table below (all dollars are constant and have the value of today): Item Description/Data Investment $ 1,500,000 Project life 6 years Salvage value $ 500,000 CCA rate 30% Annual savings $ 1,000,000 Labour $ 200,000 per year Annual expenses Material $ 125,000 per year Overhead $ 75,000 per year Marginal tax rate 40% Real interest rate 16% A] Ignoring for now any effect of inflation, what's the after-tax NPW ? B] If the general inflation rate during the next 6 year is expected be 4% annually, sales and operating costs are to be increased accordingly. What would be the NPW due to inflation? CJ How did the NPW change? Why