Benito Manufactures Pty is considering spending R55 million building a new manufacturing production facility on a site it bought for R125 million few years ago. The site is not currently in use and is currently valued at R25 million. if it goes ahead with the project, it expects to be able to sell the site at the end of the project for R3 million. No tax effects are expected on the proceeds of the sale of the land. The company will be manufacturing units and expects to be able to sell an average of 2|] 051] units in the rst year and then increasing by 2 as from year 2 to year 5 at a price of R220 per unit. The variable costs to be incurred in production will total R115 per unit with fixed costs of R550 Dill] per year. The project will require a one-time investment in working capital initially and will be recovered at the end of the project. The company will be able to sell the production facility at R5 million. lI'Jompany taxes are 35 51: and depreciation allowances are calculated on a straight-line basis to zero over 5 years. The discount rate for the company's projects is 12%. There is no inflation over this period. At the beginning of the project, the company will need cash of R2 million. market securities of R145 million, allowance for account receivables of R2 million. inventory of raw material and spare inventory amounting to R3 millions. The current ratio is 1.25. Required: 4.1. What is the estimated project's NP'v"? [15} 4.2. Would you recommend that he build the manufacturing facility? [2} 4.3. What is the number of the units required to break-even? (5} 4.4. lComment on the rationale of using the accounting break-even analysis under certain circumstances to assess project viability (2]