Answer all the parts

(20 marks) Question 4: The purpose of this general question is to incorporate the materials learned in this course together in an example. As a financial manager of the Orange Inc., which is in the business of manufacturing and selling smart glasses, you are tasked by the CEO to decide whether the company should undertake a new project that allows virtual reality to be implemented into the smart glasses (the CEO has found Mark Zuckerberg's video on Meta very inspiring) or continue with the old iteration of smart glasses. The current manufacturing equipment is incapable of implementing the VR upgrade, posing an additional challenge if the firm is to undertake the project. The following information is provided from the estimates of the accounting team: The project lasts for 5 years, after which a strategic change in how the firm operates is expected. Accepting the project requires buying a new machine (capable of implementing VR) and selling your old machine (which will be obsolete). The new machine costs $10 million and the delivery and installation costs by certified crew members requires $1 million. The new machine can be salvaged for $3 million after 5 years. The old machine can be sold today for $2 million, or it can be salvaged for $400 thousand after 5 years (if the firm decides not to undertake the project). The new machine is significantly larger than the current one. Therefore, to install the new machine, a new land must be purchased today for $10 million. This land can be sold for $12 million in 5 years. To operate the new machine, the project requires an immediate investment of $300 thousand in net working capital, which will increase by $60 thousand per year for each year of the project, and will be reclaimed at the end of the project. Sale of the new smart glasses is estimated to be $8 million each year, starting from the first year. If new smart glasses are introduced, people are less likely to purchase the last generation of smart glasses. The accounting team believes that the cannibalization of the old version of the smart glasses will be $1.2 million in the first year, and dropping by $200 thousand each year