ABC Ltd. Co. is company manufacturing electric appliances. It is considering opening a new factory in Southern region to get into a new market. The investment is budgeted as followed: - Project timeline: 10 years. - Initial investment capital: \$2 million. Of which company finance $500,000 and the rest will be a bank loan with interest 10%/ year. - Machinery cost: $1 million. Depreciated over 10 years. - Factory rent: $5,000/ month - Marketing cost: The company plans to spend $40,000 in the first 3 years, and $10,000 each year after. Current manufacturing data of ABC is: - Direct material: - Direct labor: ...... $200,000 - Overheads: ........ $250,000 With this plan, ABC expect to manufacture and sell ........ 1000 products in the first year, with an average growth of ....20\% annually the following years. Tax: 15\%. Discount rate: 12%. Requirement: 1. Prepare a NPV analysis for the project. Give recommendation. 2. If the discount rate increase or decrease 2%. How would the NPV change