A proposal to build a plant to produce a new product is presented below. The investment required is N14,000,000:0 with investment periodically as; Carte NG: Soles First year Second year Third year traume The variable operating costs are estimated to be: N10-per 1000kg of product up to year 6 N13 per 1000kg of product from year 7 8 2.0 million (design costs) 8.0 million (construction costs) 2.0 million (working capital) The fixed operating costs are estimated to be: N200,000 per year up to year 6 N250,000 per year from year 7 End of ven! 1 2 3 4 Forecast sales x 10(0) 0 0 75 83 Forecast selling price N/ 0 0 140 140 Raw material costs N/t product 0 0 85 85 Calculate: 1. The net cash flow in each year. 2. The future worth of the project, NFW. 3. The present worth, NPW, at a discount rate of 14 per cent. 4. Draw the project cash-flow diagram cold S 85 140 100 6 90 140 8S 7 90 140 85 9: 103 125 10 ITO 125 78 IN 125 85 85 78 [40