Do question (a) only

6 Dubai Foods pic is considering computerising its food processing production line. Dubai Foods pic is considering a proposal put lbrward by Altrne Robotics pic who have stated that the cost of the computerised equipment will be 135 000 The following lnl'on'nation ls available. - The computerised equipment will give labour savings of 54 000 per year. - The computerised equipment will have a life of 5 years, after which it will be sold for scrap for 5 000 . Depreciation using the straight-line method will be applied. - There will be extra costs each year. including depiciation. ll - in year 1, the extra costs including depreciation will be 42 000 per year. I 0' _:- ln year 2 and year 3. the extra costs excluding depreciation will be 5% higher each year than year 1. ,v in year 4 and year 5, the extra costs excluding depreciation will be 5% higher each year than year 2 and year 3. - Dubai Foods pic's cost of capital Will be 396. - A table showing the discount factors for 8% is given below. Required (3) Calculate the net present value of the project at the end of year 5. l1 5}