Corpcon (Pty) Ltd wishes to expand and modernise its facilities. The installed cost of a proposed computer-controlled automatic-feed roaster will be R130 000. The new roaster will be depreciated over a 5-year straight line period. The company has a chance to sell its 4-year-old roaster for R35 000. The existing roaster orginally cost R60 000 and was being depreciated over a 6-year period on a straight-line basis. Sales revenue from expansion will amount to R 70 000 per year and operating expenses and other costs (including depreciation) will amount to 29% of sales. The new roaster will result in the following change in net working capital Anticipated changes in current assets and current liabilities Accruals -R 2000 Inventory Accounts payable +R40 000 Accounts receivable +R50 000 +R70 000 Cash +R 5 000 Notes payable +R15 000 Additional information Issued shares: 10 000 000 ordinary shares Debt: R200m Before tax borrowing cost 12% Share price: R24.00 Latest dividends: Expected growth rate: Tax rate: 28% Calculate the net present value (NPV), internal rate of retum (IRR) and payback period (PB)of the roaster R2 40 5% 1.1 1.2 State on the basis of NPV, IRR and PB whether the company should expand and modernise its facilities