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Question $1(23$ Marks$)$:

The directors of company Damson Ltd is planning to invest in a new project that will lasts for four years. Following a preliminary analysis on the market, the accountant of the firm has made the following forecast:

$\backslash$table$[[$Sales Volume $($units$)$ per year,$25,000],[,$Rs$],[$Selling price per unit $($current price levels$),165],[$Variable costs per unit $($current price levels$),95],[$Incremental fixed costs $($current price levels$),900,000$ per annum$],[,],[$Cost of machine,$1,000,000$