A toothpaste manufacturer has the opportunity to expand by bringing out miswak toothpaste. The initial cost of the assets is PRS 100 mn. The company's working during the life of the new product. The new product is estimated to have a useful life of five years, at which time the assets would be sold for PRS 5 mlon and working capital fully recovered. Management expects company sales to increase by PRS 100 million the first year, PRS 150 million the second year, PRS 140 million the third year, and then falling to PRS 60 million by the fourth and the fifth years. Operating expenses are expected to be 65% of sales, assets are depreciated to book value of zero based on straight line method and the company tax rate is 35%. capital would increase by PRS 10mlion Estimate total after-tax free cashflow for each operating year. (15) If the required rate of retum on the project is 15% p.a. should the company invest? (5) a. b